Académique Documents
Professionnel Documents
Culture Documents
ON
Critical Analysis Of Life Insurance Policies With
Special References To ICICI PRUDENTIAL
FACULTY GUIDE:
Dr. Anurag Gupta
Faculty, IMS, DDUN
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CERTIFICATE
I have the pleasure in certifying that Mr./Ms.Urvashi Gupta. is a bonafide
student of 3rd semester of the Masters Degree in Business Administration
of Institute of Management Studies, Dehradun under Class ID No.
MB06010.
I certify that this is his original effort and has not been copied from any
other source. This project has also not been submitted in any other
university for the purpose of award of nay degree.
Signature:
Name of the Guide:.
Date:.
4
Declaration
Date
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CONTENT
1. Preface
2. Acknowledgement
3. Executive summary
4. Introduction
5. Objectives of the study
6. Review of Literature.
7. Research Methodology
8. Analysis & Findings
9. Recommendations
10. Conclusions
11. Bibliography
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PREFACE
The business of insurance is related to the protection of economic value of assets. The assets
would have been created through the efforts of the owner, in the expectation that, either
through the income generated there from the some other output, some of his needs would be
met. If assets get lost earlier, being destroyed or made non-functional, through an accident or
other unfortunate event, the owner and those deriving benefits there from suffer. Insurance is
a mechanism that helps to reduce such adverse consequences.
Insurance plays a major role in different perspective. For economic development investments
are necessary. Investments are made out of savings. A life insurance company is a major
investment for the mobilization of saving of people, particularly from the middle and lower
income groups. These savings are channeled in to the investments for economic growth. In
order to amenable to statistical predictions, insurance risks must be handled on a large scale.
All organization face change in their environment with resultant change in their markets and
in the ability to satisfy their markets. Each organization is faced with new marketing
problems and opportunities in their existing and potential market.
This report is a outcome of summer training report at ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LIMITED at Dehradun. This training is a part of the
curriculum of MBA program at INSTITUTE OF MANAGEMENT STUDIES
,DEHRADUN.
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ACKNOWLEDGEMENT
First, I thank my corporate guide Mr.Mohit Bajaj, for his continuous support in the
completion of our summer training project and guiding us all the way giving us insight of the
insurance industry as well as the corporate world. Mr. Mohit Bajaj was always there to listen
and to give advice. He is responsible for involving me in the various activities during our
training. He taught me how to ask questions and express my ideas. He showed me different
ways to approach a research problem and the need to be persistent to accomplish any goal. I
also thank the other members of the ICICI Prudential at Dehradun especially Mr. Atul,
Mr.Amit Kumar Mr. Siddharth, ,Mr.Amit Agrawal for guiding us in our project. I also thank
Neeti Semwal, Ruchi my team mate, with whom I explored the ideas, organization,
requirements and Dehardun.
Nextly I would like to thank Dr. Pradeep Suri, Mr. Vishal Sagar and Mr. Anirban Roy
because of whom I successfully undergone this training in ICICI Prudential. They were
always there to meet and talk about my ideas, to proofread and mark up my project, and to
ask me good questions to help me think through my problems (whether philosophical,
analytical or computational). The beautiful weather in Dehradun has kept me in good spirits.
Urvashi Gupta
MBA 3RD SEM.
IMS DEHRADUN
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EXECUTIVE SUMMARY
In todays competitive world the topper is always doing something different from others or
may be the same thing in a much more different way. The same logic goes for the business
world too. With new competitors coming every now and then the field of business, the
company positioning should be strong enough to retain its position in business. ICICI
PRUDENTIAL LIFE INSURANCE COMPANY LIMITED has positioned itself
strongly with high-class advisors, unit manager, and technical persons. The study that is
being made is that to find the SALES OFFICERS PERCEPTIONS TOWARDS
POLICIES OF ICICI PRUDENTIAL To make this research mostly Primary Data is
being used, taking a sample size of 150 people. The Research Methodology that is being
implemented in this study is Sampling Method.
This result which was found from this research clearly shows a company should be more
flexible to the training program they organized for the high profile advisor. The project
undertaken is the through study of the services and activities, which the company is willing
to give each advisor.
From the survey it was revealed that ICICI PRUDENTIAL is doing quite well in all the
sections of its operations, but still it needs some perfection to attract more and more HIGH
PROFILE ADVISOR so that they will give more policy for the company.
Others: This part includes the day to day people whom I use to meet in the organization.
They are the advisors working there; this include the staff working out there and even the
people whom I met in the DEHRADUN, who were kind enough to spare a few minutes of
their precious time and to take part in the survey.
Marketing decision makers cope with these challenges in a variety of ways. Man on earth can
entirely eliminate knows no method but scientific method can minimize the element of
uncertainties that can result from back of information without orientation, Market research is
a process of collecting information about who, why and how of actual and potential
consumers in a particular market. The main purpose of market research is the ability to
continually foresee both in the long and short term.
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INTRODUCTION
WHAT IS INSURANCE?
Insurance is a contract between two parties whereby one party called the insurer,
undertakes to compensate the other party known as insured in the event of loss in
consideration of premium.
Insurance is a protection against a financial loss arising on the happening of an unexpected
event. Insurance company collects premium to provide for this protection. A loss is paid out
of this premium collected from the insuring public. The insurance company act as a trustee to
the amount collected through premium.
REDUCES VULNERABILITY
As individuals trade the uncertain prospect of a large loss in the future for the uncertainty of
much smaller, regular payments (premiums).
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Risk pooling mechanism cannot provide coverage against all economic stresses.
HISTORY OF INSURANCE
Life Insurance in its existing form came to India from the United Kingdom with the
establishment of a British firm Oriental Life Insurance Company in Calcutta in 1818
followed by Bombay Life Assurance Company in 1823. The Indian Life Assurance
Companies Act, 1912 was the first statutory measure to regulate life insurance business.
Later in 1928 the Indian Insurance Companies Act was enacted to enable the Government to
collect statistical information about both life and non-life insurance business transacted in
India by Indian and foreign insurers including provident insurance societies. In 1938 with a
view to protecting
The interest of insuring public earlier legislation was consolidated and amended by the
Insurance Act 1938 with comprehensive provisions detailed and effective control over the
activities of insurers.
The Act was amended in 1950 resulting in far reaching changes in the insurance sector.
These included a statutory requirement of equity capital for companies carrying on life
insurance business, ceiling on share holdings in such companies, stricter control on
investments, submission of periodical returns relating to investments and such other
information to
The controller. The controller could also call for appointment of administrators and put a
ceiling on expenses of management and agency
Commission for mismanaged companies.
By 1956, 1.54 Indian insurers, 16 foreign insurers and 75 provident societies were carrying
on life insurance business in India. Life insurance business was concentrated in urban areas
and confined to the higher strata of the society.
On January 19, 1956, the management of life insurance business of 245 Indian and foreign
insurers and provident societies then operating in India were taken over by the Central
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Government. Life Insurance Corporation was formed in September 1956 by an Act of
Parliament, viz. LIC Act 1.956 with a capital contribution of Rs.50 mn.
India is the world's 23rd largest insurance market. In 2000 total premiums amounted to
$9.93bn (Rs.481 bn) an amount equal to 0.41% share of the world market. Global insurers
and reinsures are gradually gaining access to the Indian insurance market with significant
potential Based on its population over one billion. It is estimated that by 2010, the industry
would have reached a market size of Rs.1.8 trillion ($37bn).
Over the past ten years, India has gradually opened its doors to foreign and domestic private
involvement and is internationally regarded as a potential business center. This is largely due
to encouraging growth figures and an expanding middle class of prospective investors.
Opportunities presented by liberalization of the insurance sector have also given way to an
increase in bank ownership of insurers. In April 2000, he Reserve bank of India increased
the limit of bank ownership from 30% to 50% and will allow investments of up to 74% on a
selective basis.
Many foreign insurers interested in undertaking business in India are attracted by the option
to invest in Indian banks and foreign banks are also seeking to enter the business. The
national reinsures General Insurance Corporation of India (GIC) will generate revenues
through a compulsory cession of 20% from all non-life providers in the Indian market.
The new as well as the old insurers will have to face a number of challenges in the liberalized
market.
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New Insurers - The new insurers will have to invest a minimum capital of Rs.100 crores.
The normal gestation period is of five years. The generation of profit normally starts in the
sixth year. Hence the new insurers will have to be ready for locking up their capital for at
least 5 years before earning any profits. Besides they will face problems of shortage of
trained manpower for the insurance industry. The setting up of various offices and
distribution network is a time consuming process. Further the new insurers will have to
compete with the established insurance companies like LIC and GIC which have a corporate
image and market presence for several years.
Today LIC has more than 60 products and GIC has more than 180 products to offer in the
market. But most of them are outdated, as they are not suitable to the needs of the
consumers. Hence old as well as new insurers will have to offer innovative products to the
consumers. The consumers are particularly expecting good pension plans, health insurance,
term insurance and investment products like unit linked insurance, from the life insurers.
Similarly the consumers expect innovative products from the general insurers for managing
healthcare, property insurance, accident insurance and other products related to the personal
line of insurance.
The consumers also expect reduction in the premium of the insurance products as the
mortality rate in India has come down by three times in the last 50 years.
DISTRIBUTION CHANNEL
In the liberalized insurance market, there will be multiple distribution channels, which will
include agents, brokers, corporate intermediaries, bank branches, affinity groups and direct
marketing through telesales and Internet. Some channels will be cheaper than others. Hence
there will be competition among the channels. The new insurers will operate with the help of
multiple distribution channels but the existing insurers may be forced to operate only with the
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help of agents. Hence, intense competition will grow among the old and new insurers in the
market to win the consumers. This will pose a great challenge to the insurers in the
liberalized insurance market.
CONSUMER EDUCATION
Very soon the market will be flooded by a large number of products by a fairly large number
of insurers operating in the Indian market. Even with limited range of products offered by
LIC and GIC, the consumers are confused in the market. Their confusion will further
increase in the face of a large number of products in the market. The existing level of
awareness of the consumers for insurance products is very low, it is so because only 62% of
the population of India is literate and less than IO% well educated. Even the educated
consumers are ignorant about the various products of insurance. Hence it is necessary that
all the insurers should undertake the extensive plan for education of consumers. The
consumer organizations and the media also can play very important role in education of the
consumers. This will result in expansion of the insurance market and will also enable the
needy consumer to purchase appropriate products.
The insurers will have to face an acute problem of the redressal of the consumers,
Grievances for deficiency in products and services. The Insurance Regulatory
Development Authority (IRDA), the regulatory body has already appointed Ombudsman
for looking into the grievances of the policyholders; his judgment will be binding on
insurers. Further, under Consumer Protection Act 1986, the consumer courts are operating
at district, state and the national level. In the competitive market, awareness level of the
consumers will increase and it will help consumers to fight for their le-al right for
deficiency in services. Hence
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the number of legal cases filed by the consumers against insurers is likely to increase
substantially in future. This will be a challenge to the insurers.
The Insurance Regulatory and Development Authority (IRDA) have twin roles - regulation as
well as development. It is said that no game is possible without rules but too many rules
spoil the game. Hence the regulator has to ensure a balance in the enactment of the
regulations. The insurance industry for its effective development needs fair competition.
This has to be ensured.
Further, a large number of insurers with initiative, commitment and financial resources
should be encouraged to enter the insurance market. The entry rules should be easy and
simple so that compliance may be easier by the potential insurers.
in the first year itself by the insurance companies. Also Life insurance companies will have
to increase their rural business from five per cent in the first year to 15 per cent in the fifth
year. In the case of general insurance, the companies have to increase their rural business
from two per cent in the first year to five per cent in the third year. IRDA has further notified
that it will take into account the paid-up equity share capital held by the foreign company
either by itself or through its subsidiary companies in the applicant insurance company in
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order to ensure that the foreign equity limit of 26 per cent is maintained by the new entrants.
Accordingly, the guidelines have specified that the paid-up equity share capital held by other
foreign investors, Non-Resident Indians (NRI's), Overseas Corporate Bodies (OCB's) and
multinational agencies in the applicant company would be within the 26 per cent limit.
However, the guidelines have clarified that the holdings of FII's in the Indian Promoter
Company and Indian mutual funds will not be taken into account while calculating the 26 per
cent limit in the JV. IRDA has also put compulsory social sector obligations on new entrants.
The companies will have to insure 5,000 lives in the social sector in the first year. This has to
gradually increase every year to 20,000 lives in the fifth year. The social sector under the
definition includes unorganized sector, economically vulnerable and backward classes.
Existing insurance companies like state-owned LIC and GIC will have to submit application
to the insurance authority with original certificate of registration, evidence of having Rs100
crores paid.-up capital for life insurance and general insurance business.
With the increase in the life span of individuals and disintegration of the joint family system,
each Individual now has arranged insurance cover for himself and for his family. Hence,
coverage of insurers, which was around 9% of the population in 2000, has to grow very fast.
In fact all the citizens in the middle class, estimated around 314 million can afford insurance
from their own financial resources. The remaining population has to be given subsidized
insurance with the help of the government as well as the insurers.
The huge life fund can be utilized for financing the infrastructure industry as well as a
support to other industries in the country. Hence insurance industry is likely to play a key
role in changing the economic landscape of the country. However the success of the
insurance industry will primarily depend upon meeting the rising expectations of the
consumers who will be the real king in the liberalized insurance market in future.
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The Insurance Regulatory and Development Authority (IRDA) has twin roles - regulation as
well as development. It is said that no game is possible without rules but too many rules
spoil the game. Hence the regulator has to ensure a balance in the enactment of the
regulations. The insurance industry for its effective development needs fair competition.
This has to be ensured.
Further, a large number of insurers with initiative, commitment and financial resources
should be encouraged to enter the insurance market.
The entry rules should be easy and simple so that compliance may be easier by the potential
insurers.
The size of the existing insurance market is very large and is crowing at the rate of 10% per
year. The estimated potential of the Indian insurance market in terms of premium was around
$80 billion (Rs.3, 44,000 crores) in the year 1999. But only 10% of the market share has been
tapped by LIC and GIC and the balance 90% of the market still remains untapped. This vast
potential can be tapped only by a large number of insurers. To serve Rs100 crores of
population, Indian insurance market offers tremendous opportunities to prospective insurers
and can easily sustain about 100 insurance companies. Hence, there is scope for a large
number of Insurers. The regulator has already issued around 10 licenses to life Insurance
companies in the private sector and quite a few other companies are also in the pipeline. But
the regulator should issue licenses to a large number of insurers if the insurance market has to
grow at a fast rate.
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PROBLEMS OF THE STUDY
Low level of awareness of people about life insurance who has buying capacity.
It is important to evaluate the mindset of people for insurance industry.
Problem is to know which product is more accepted by which level of income.
The customer is finding difficult in comparing these products and choosing the right
one for him since each product is unique in itself but the deciding factor is still the
monetary investment.
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RESEARCH METHODOLOGY
Research Methodology deals with, the procedure adopted to carry out the study.
According to Green and Tull
A research design is the specification of methods and procedures for acquiring the
information needed. It is he overall operational pattern or framework of the project that
stipulates which information is to be collected from which sources by what procedures
For conducting the study, the researcher has adopted both primary as secondary method of
data collection
PRIMARY DATA
For the purpose of collecting primary data, the researcher has adopted the method of survey.
Survey can be telephonic, by mail personal and by the diary. For the purpose of collected
detailed information, researcher has chosen surveys based on personal interview - by means
of a questionnaire.
SECONDARY DATA
It has been collected from various books and Internet sites. Researcher has adopted this
method of data collection, as the researcher liters no
access to magazines and journal but a plenty of material was available on the internet sites.
SAMPLE
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Due of time and resource constraints, the sample of the study is taken as one and the
technique of sampling adopted is: convenient sampling.
To collect the primary data, the researcher has taken the help of the employees of ICICI
Prudential Life Insurance Company. As the researcher (i.e.; I) was doing the summer
training in this company, so it was easy to gather the required information through brochures,
catalogs and company reports.
HISTORY
ICICI Ltd. was established in 1955 by the World Bank, the Government of India and the
Indian Industry, to promote industrial development of India by providing project and
corporate finance to Indian industry. In 1956 declared its first Dividend at 3.5%? In 1960
ICICI building at 163, BACKBAY RECLAMATION was inaugurated.ICICI has grown from
a development bank to a financial conglomerate and has become one of the largest public
financial institutions in India. ICICI has thus far financed all the major sectors of the
economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had
disbursed a total of Rs. 1, 13, 070 crores, since inception. In 1970 ICICI sponsors the
formation of HOUSING DEVELOPMENT FINANCE CORPORATION (HDFC).
Managed its first equity public issue. In 1986 ICICI first Indian Institution
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to receive ADB Loans. First public issue by an Indian entity in the Swiss Capital Markets.
ICICI along with UTI sets up Credit Rating Information Services of India Limited,
(CRISIL) India's first professional credit rating agency. ICICI promotes Shipping Credit and
Investment Company of India Limited. (SCICI). The Corporation made a public issue of
Swiss Franc 75 million in Switzerland, the first public issue by any Indian equity in the Swiss
Capital Market. In 1987 ICICI signed a loan agreement for Sterling Pound 10 million with
COMMONWEALTHDEVELOPMENT COPORATION (CDC), the first loan by CDC
for financing projects in India. IN 1994 ICICI sets up ICICI Bank. In 1997 ICICI was the
first intermediary to move away from single prime rate to three-tier prime rates structure and
introduced yield-curve based pricing the name "The Industrial Credit and Investment
Corporation of India Limited was changed to "ICICI Limited ICICI announces
takeover of ITC Classic Finance. In 1999 ICICI launches retail finance - car loans, house
loans and loans for consumer durables ICICI becomes the first Indian Company to list on the
NYSE through an issue of American Depositary Shares. In 2000 ICICI Bank becomes the
first commercial bank from India to list its stock on NYSE.
ICICI Bank (NYSE:IBN) It is Indias second largest bank with an asset base of Rs. 106812
crore. ICICI Bank provides a broad spectrum of financial services to individuals and
companies. This includes mortgages, car and personal loans, credit and debit cards, corporate
and agricultural finance. The Bank services a growing customer base of more than 7 million
customer accounts and 5 million bondholders accounts through a multi-channel access
network. This includes about 450 branches and extension counters, 1675 ATMs, call centres
and Internet banking (www.icicibank.com). ICICI Bank posted a net profit of Rs.1, 206 crore
for the year ended March 31, 2003. ICICI Bank is the only Indian company to be rated above
the country rating by the international rating agency Moodys and the only Indian company
to be awarded an investment grade international credit rating. The Bank enjoys the highest
AAA (or equivalent) rating from all leading Indian rating agencies
HISTORY OF PRUDENTIAL
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Prudential plc. Was founded in 1848. Since then it has grown to become one of the largest
providers of a wide range of savings products for the individual including life insurance,
pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries,
and caters to the financial needs of over 10 million customers. It manages assets of over US$
259 billion (Rupees 11, 39,600 crores approx.) as of December 31, 1999. Prudential is the
largest life insurance company in the United Kingdom (Source: S&P's UK Life Financial
Digest, 1998).
It is a leading international financial services company in the UK, with around US$250
billion funds under management, and more than 16 million customers worldwide. Prudential
has brought to market an integrated range of financial services products that now includes
life Assurance, pensions, mutual funds, banking, investment management and general
insurance. In Asia, Prudential is UK's largest life insurance company with a vast network of
22 life and mutual fund operations in twelve countries- China, Hong Kong, India, Indonesia,
Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since
1923, Prudential has championed customer-centric products and services, supported by over
60,000 staff and agents across the region.
Asia has always been an important region for Prudential and it has had a presence in Asia for
over 75 years. In fact Prudential's first overseas operation was in India, way back in 1923 to
establish Life and General
Branch agencies. Established in 1848, today Prudential plc is a leading international financial
services company with some 16 million customers, policyholders and unit holders and some
20,000 employees worldwide. In the UK Prudential is a leading life and pensions provider
with around seven million customers.
M&G was acquired by Prudential in 1999 and is the Group's UK and European fund
manager, responsible for managing over 111 billion of funds (as at December 2003).
Launched by Prudential in 1998, Egg is an innovative financial services company, with over
three million customers, with nearly six per cent of UK credit card balances.
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In Asia, Prudential is the leading European life insurer with 23 life and fund management
operations in 12 countries serving some five million customers. In the US, Prudential owns
Jackson National Life, a leading life insurance company, and has more than 1.5 million
policies and contracts in force.
Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudential plc of
U.K. In November 2000, ICICI Prudential Life Insurance was granted Certification of
Registration for carrying out life insurance business by the Insurance Regulatory &
Development Authority of India. The Company issued its first policy on December 12, 2000.
ICICI Prudential has consolidated its position as the leading private life insurer in India.
ICICI Prudential's annualized premium grew more than three fold over the previous year.
Continuing with its 'Customer First' philosophy, ICICI Prudential has significantly expanded
its presence to 29 operational Branches (2001-2002:16),with the Advisor Force growing to
over 18,000. Its has also strengthened its Alternate Distribution channels, i.e. Banc assurance,
Corporate Agents and Direct Marketing, making purchase of insurance more accessible.
Banc assurance and Direct Marketing channels have contributed to over 18% of the
Annualized Premium.
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ICICI Prudential was amongst the first to identify the emerging opportunity in the Pension
segment and launched two linked pension products- LifeTime Pension and Life Link
Pension, which have been well received in the market.
SUMMERY
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A summary of the financial performance of ICICI Prudential Life Insurance is as
follows
( Rupees. in million )
Particulars for the period ended March 31, 2007
4176.00 1163.00
Premium Income
120.60 220.71
Other Income
4424.00 1193.71
Total Income
8.63 11.07
Expenditure
(1471.82) (1050.98)
Net Profit/(Loss)
Share Capital 4250.00 1900.00
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management
Company, which has today emerged as one of the
Leading mutual funds in India. The two companies bring together two of the strongest
financial service brands in Asia, known for their professionalism, excellent quality of service
and long term commitment to YOU. Riding on the success of this relationship, the two
companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a
commitment to provide leading-edge life insurance solutions. ICICI Bank has 74% stake in
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the company, and Prudential plc has 26%.
ICICI Prudential was amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).ICICI Prudential's equity base stands at Rs. 6.75 billion with
ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the year ended
March 31, 2004, the company had issued over 430,000 policies, for a total sum assured of
over Rs 8,000 crore and premium income in excess of Rs. 980 crore. The company has a
network of about 30,000
advisors; as well as 12 banc assurance tie-ups. Today the company is the #1 private life
insurers in the country.
MISSION
To be the dominant
Life and Pension player
Built on trust by world
Class people and services
VISION
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-
class people and service.
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The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the
values describes what the company and above all, building transparency in all our dealings.
Stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.
1. Life insurance
2. Health insurance and;
3. General insurance
company or through intermediaries. Term is the lowest cost life insurance product available.
When you buy term life, you are purchasing "pure" insurance which typically does not
include a cash value or a savings feature. Term Life insurance, as the name implies, is
purchased for a particular "term" or length of time.
Once that term period has arrived, and you do not convert your term policy to a "permanent"
type, your life insurance policy will expire. If the
insured dies within the "term period," the predetermined death benefit will be paid to the
beneficiaries.
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LIFE INSURANCE
Your family counts on you every day for financial support: food, shelter, transportation,
education, and much more. Insurance provides you with that unique sense of security that no
other form of investment provides. It gives you a sense of financial support especially during
that time of crisis irrespective of the fluctuations in the stock market. Insurance provides for
your career goals right from your childhood years.
Life insurance is all about making sure your family has adequate financial resources to make
those plans and dreams come true. It provides financial protection to help your family or
business to manage after your death.
Or you can say that risk insurance intended as protection against the financial consequences
of the death of the insured person which takes the form of payment of a previously agreed
lump sum or pension to a beneficiary, if the insured person dies during the term of insurance.
In the case of pure life insurance, without any endowment insurance component, no
payments are due if the insured person survives the term of insurance.
PRIVATIZATION
The privatization of insurance has confirmed three propositions:
For privatization to succeed, a strong institutional framework is necessary.
There are significant efficiency gains from privatization.
The winners out number the losers.
LEGISLATION
Insurance Act 1938 and Insurance Rules 1939 - regulates insurance business.
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Motor Vehicles Act 1939 and Employees' State Insurance Act 1948 - imposes
compulsory insurance.
Marine Insurance Act 1948 - regulates interpretation of marine policies.
Insurance Regulatory and Development Authority (IRDA) Act, 1999 enables.
Indian insurance companies to transact insurance business freely in India.
REGULATION
The ratification of the IRDA bill in 1999 ended the government monopoly on the insurance
sector and established an insurance regulatory authority. The IRDA was intended to focus on
creating and enforcing a framework to promote a competitive and liberal marketplace.
The IRDA bill also limits foreign equity in domestic companies to 26%. The minimum
capital requirement for life and non-life insurance business is $23m and for reinsurance
$46m.
The Indian market is still dominated by the old insurance monopolies Life Insurance
Corporation of India (LIC) and the GIC. Prior to October 2000 the GIC accounted for 100%
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of general insurance premiums. Despite restructuring and greater competition, the GIC is
expected to keep 75% of the market premiums in the short to medium-term.
In April 2002, India's Insurance Regulatory and Development Authority (IRDA) introduced
draft regulations that aim to ensure insurers are transparent with policyholders post-
liberalization. The draft included strict deadlines for meeting claims, grievance procedures
and clear product-related material that states the scope of cover at the point of
sale. The IRDA also issued new accounting norms that require insurers to provide data on
solvency margins, investment practices and compliance with shareholding requirements.
Policyholders should benefit from more than just the amount paid out if the insured
risk occurs.
Providers should benefit from an additional source of income as well as the improved
performance of the credit and savings portfolio.
The benefits policyholders receive from insurance coverage can be thought of as a function
of four variables, namely:
The size of the insurance benefit relative to the loss resulting from the covered risk.
Continuity of coverage.
Flexibility of coverage (ability to choose the amount of coverage).
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Timeliness of claims repayment.
Life insurance is a unique asset which is a valuable addition to your overall estate due to its
potentially high yield and tax-favored benefits. Life insurance can be used for any number of
reasons. Some of the most common uses are:
CREATING AN ESTATE where time or other circumstances have kept the estate
owner from accumulating sufficient assets to care for his or her loved ones. Life
insurance can create an instant estate.
PAYING ESTATE TAXES and other estate settlement costs. These costs can vary
from a low percentage of three to four percent to over 50% of the estate. Federal
Estate Taxes are due nine months after death.
FUNDING A BUSINESS TRANSFER. Business owners often agree to buy a
deceased owner's share from his or her estate after death. Life insurance provides the
ready cash to finance the transaction.
FUNDING COLLEGE for children or grandchildren. Cash value increases, in a
policy on a minor's life or the parent's life, can be used to accumulate funds for
college.
PAYING OFF THE SOME MORTAGE. Many people would like to pass the
family residence to their spouse or children free of any mortgage. Often a decreasing
term policy is used, which decreases in face amount as the mortgage balance is paid
down.
PROTECTING A BUSINESS From the loss of a key employee. Key employees are
difficult to attract and retain. Their untimely death may case a severe financial strain
on the business.
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CREATING A RETIREMENT FUND. Current insurance products provide
competitive returns and are a prudent way of accumulating necessary funds for
retirement years.
REPLACING A CHARITABLE GIFT. Charitable Remainder Trusts provide tax
benefits and life insurance can replace the value of the donated asset. Policies can
also be paid directly to a charity.
GUARANTEEING LOANS. Personal or business loans can be paid off with
insurance proceeds.
EQUALIZING INHERITANCES. When the family business passes to children
who are active in it, life insurance can give an equal amount to the other children.
Term insurance is bought by millions of people for a number of reasons. Families use Term
for security. In case the insured passes away, your Term policy insures there will be money to
use to pay for your home, college, outstanding loans and other major expenses. Small
Business Owners use Term insurance as low cost debt protection to cover notes, lease
obligations, business real estate mortgages and other expenses.
Business Partnerships often use Term Insurance to buy out partners in the event of their
death. For example, the deceased's beneficiary gets the insurance proceeds and the ownership
in the company is then transferred to the remaining partner(s).
Corporations use Term as stock purchase redemptions. In this case, the corporation gets the
insurance proceeds and buys back the stock from the deceased's beneficiary, normally the
surviving spouse or estate. For Businesses, Term Insurance can provide real benefits for the
beneficiaries with no negative cash flow impact on the company.
Insurance is not the only mechanism for reducing vulnerability. Targeted savings and
consumption loans are sometimes more appropriate products.
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Insurance protects households against those risks that they are unable to protect themselves
through informal mechanisms, savings or credit. Insurance providers are concerned that
coverage of risks can be provided on a sustainable basis. Therefore, insurance is appropriate
when there is an overlap of perspectives of both the household and the provider.
There is a degree of uncertainty among the various sources of vulnerability for low income
households, such as life cycle events, death, disability, loss of property, etc. Poor households
may choose to withdraw from savings or manage the risk with a loan. For most lifecycle
events, the amounts are negligible, but there are occasional events such as epidemics, war,
serious natural disasters that are all considerably more risky than life cycle events. Life cycle
events are relatively predictable as compared to disability, illness or losses to property
resulting from accidents, disasters, etc. Correspondingly, the resulting losses or costs for
each of these sources of vulnerability can vary from small to very large. Insurer can help the
poor to cope with day-to-day events, but as risks tend to get more and more uncertain, the
losses increase and simple savings and loan activities may not be able to manage those
losses.
Whole life policies - Cover the insured for life. The insured does not receive money while he
is alive; the nominee receives the sum assured plus bonus upon death of the insured.
Endowment policies - Cover the insured for a specific period. The insured receives money
on survival of the term and is not covered thereafter.
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Money back policies - The nominee receives money immediately on death of the insured.
On survival the insured receives money at regular intervals during the term. These policies
cost more than endowment with profit policies.
Pension schemes - are policies that provide benefits to the insured only upon retirement. If
the insured dies during the term of the policy, his nominee would receive the benefits either
as a lump sum or as a pension
every month. Since a single policy cannot meet all the insurance objectives, one should have
a portfolio of policies covering all the needs.
A large number of similar units should be exposed to the risk. Relative to total
population.
There should be existence of insurable interest, i.e. the policyholder should be the one
who suffers the loss in the event of a risky event.
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Losses should not be co-variant, i.e. insured risks should be unlikely to cause losses
for a substantial portion of a population at the same time.
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NON-GOVERNMENT GENERAL INSURANCE COMPANIES WORKING IN INDIA
BAJAJ ALLIANZ GENERAL INSURANCE CO.LTD.
CHOLAMANDALAM GENERAL INSURANCE CO LTD.
HDFC CHUBB GENERAL INSURANCE CO.LTD.
ICICI LOMBARD GENERAL INSURANCE CO.LTD.
IFFCO TOKIO GENERAL INSURANCE CO.LTD.
NATIONAL INSURANCE COMPANY LTD.
NEW INDIA ASSURANCE COMPANY LTD.
ORIENTAL INURANCE COMPANY LTD.
RELIANCE GENERAL INSURANCE CO.LTD.
ROYAL SUNDARAM GENERAL INSURANCE CO. LTd.
TATA AIG GENERAL INSURANCE CO. LTD.
UNITED INDIA INSURANCE COMPANY LTD.
Here in this report I are considering only Life Insurance companies. Because ICICI
PRUDENTIAL LIFE INSURANCE COMPANY LIMITED is a Life Insurance
Company so we are taking into consideration of that companies which are offering Life
related Policies. I are leaving that companies which are in the field of General Insurance.
Above I have given name of all insurance companies which are in the field of life
insurance.
At first I am giving description of Policies of ICICI PRUDENTIAL LIFE
INSURANCE COMPANY Ltd.
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SECURE PLUS
Planning your financial future is absolutely essential. As you plan, you realise that the most
important aspects of your financial plan are: saving enough and providing financial security
for your family. Presenting
Secure Plus
An insurance plan that gives added protection savings and multiple options, all in one! How
does Secure Plus provide you with protection?
Secure Plus offers you three levels of cover (in the form of sum assured) for the same amount
of total annual contribution. You have the option to choose amongst Basic, Standard and
Enhanced level of cover, as given below:
You have the flexibility of shifting between the three levels of cover. (As per your changing
requirements). For each level of sum assured, applicable mortality charges would be
deducted from your premium. In the unfortunate event of death, your family's financial future
is protected by an amount, which is equal to the sum of the chosen cover level and the value
accumulated in your policy.
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ICICI Prudential gives you the freedom to form your very own comprehensive insurance
policy by adding the rider benefits to the basic life insurance policy. Add from the following
list of benefits to increase the scope of your policy, at a nominal cost.
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8. CAGS (BYPASS) and
9. CANCER.
If the policyholder is diagnosed with any of the specified illnesses, then the policyholder is
paid the entire sum assured under the rider. The policy along with all the riders (to the extent
of the Rider Sum Assured) is then
terminated. However, the remainder of the base policy continues till the end of the term. The
policyholder will have to continue paying his premiums for the remainder of the policy.
If the policyholder is diagnosed with any of the specified illnesses, then the policyholder is
paid the entire sum assured under the rider. The life cover along with all the riders is then
terminated. However, the policy value accumulation continues till the end of the term or
death, whichever is earlier.
If the policyholder is diagnosed with any of the specified illnesses, he/she is paid the rider
Sum Assured and the rider terminates. However, the base policy continues till maturity.
Premiums paid under this rider are eligible for tax benefits under Section 80D.
This rider provides assistance to the policyholder against 43 surgical procedures. These
surgical procedures are divided into 3 categories and the extent of assistance provided
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depends on the type of procedure. Major procedures 50% of the rider sum assured is paid.
Intermediate procedures 30% of the rider sum assured is paid Minor procedures
20% of the rider sum assured is paid. This benefit is payable on more than one occasion
when the life assured undergoes surgery. However the total benefit payable in case of all the
procedures is restricted to a maximum of 50% of the sum assured. Major Surgical Assistance
rider is available with Save n Protect, Cashbak, Lifetime II, ForeverLife, SecurePlus,
CashPlus and SecurePlus Pension. Premiums paid under this rider are eligible for tax benefits
under Section 80D.
If the policyholder survives an accident but becomes permanently disabled then the
premium for the basic plan is completely waived off to the extent of the rider sum
assured.
Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in
providing that extra money and takes care of sudden financial set back that occurs
after a tragic disability.
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Cashbak, SmartKid Child Plans, Lifetime II, LifeTime Pension II, ForeverLife, SecurePlus,
CashPlus, SecurePlus Pension, LifeGuard ROP and LifeGuard WROP. In case of Lifetime II,
Lifetime Pension II, SecurePlus, CashPlus, LifeGuard ROP and LifeGuard WROP, the
waiver of premium benefit is not available. Premiums paid under this rider are eligible for tax
benefits under Section 88.
If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition
to the basic sum assured. Accident Benefit rider is available with save nProtect, CashBak,
SmartKid regular premium, ForeverLife, SecurePlus, CashPlus and SecurePlus Pension.
Premiums paid under this rider are eligible for tax benefits under Section 88.
In case of death of the life assured during the term of the policy, 10% of the rider sum
assured is paid annually to the beneficiary, on each policy anniversary till maturity of the
rider. Income Benefit rider is available with SmartKid Child Plans, SecurePlus and CashPlus.
Premiums paid under this rider are eligible for tax benefits under Section 88.
On total and permanent disability due to an accident, all future premiums for both the base
policy and rider(s) will be waived till the end of the term of the rider or death of the life
assured, if earlier. Waiver of Premium rider is available with SecurePlus, CashPlus,
LifeGuard ROP, and LifeGuard WROP, SmartKid Unit-linked regular premium II, Lifetime
II, LifeTime Pension II and SecurePlus Pension. Premiums paid under this rider are eligible
for tax benefits under Section 88.
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At the end of every year, the company would declare a bonus interest that would be applied
on the allocable portion* of your premium. This bonus interest will have a compounding
effect on the value of your policy. The differential between the bonus interest credited and the
income earned on investments would not be more than 1%. The payment of the accumulated
value of your policy (including the bonus interest declared) is guaranteed on maturity
(termed as maturity proceeds), or in the case of unfortunate death, along with the sum
assured (the amount of cover).
What are the maturity proceeds and how can you use them?
Maturity proceeds are the accumulated value of your policy at the time of maturity. However,
if the value of your investment is more than the accumulated value of your policy then that
too will be paid at the time of maturity.
You have the unique flexibility of receiving your maturity proceeds as a lump-sum or in
equal annual installments over 3 or 5 years which can be decided by you at maturity. In case
of death, the remaining amount would be paid back. There is no life-cover during this
withdrawal period.
Any person-aged up to 60 years can apply for SecurePlus. The maximum age at which cover
ceases is 75 years of age. The minimum term of the product is 10 years and the maximum
term would be 30 years.
SecurePlus has a minimum annual premium of Rs.6, 000, a half yearly premium of Rs. 3,000
and monthly premium of Rs.500.
SECUREPLUS BE DISCONTINUED
SecurePlus acquires a paid-up value after three policy years' premiums are fully paid. The
paid up value will be the higher of the accumulated value of your policy and the investment
value of the accumulated value at the time of death or maturity. The guaranteed surrender
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value will be 35% of all premiums paid excluding the 1st year premium, all extra premiums
and premiums for rider benefits. In addition, the company may provide the current non-
guaranteed surrender values as specified from time to time on request.
SecurePlus provides a loan to policyholders, once the product is paid up. The loan amount
would depend upon the paid-up value of the policy. Interest applicable from time to time
would be charged on the loan amount.
For extra protection, SecurePlus offers the add-on value of the following riders which I have
discussed earlier these are the additional benefits for the customer or you can say the extra
protection.
THE SUM ASSURED UNDER THE RIDERS CANNOT EXCEED THE BASE
SUM ASSURED.
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*INVESTMENT OF PREMIUMS
The premiums paid by you would be invested after deducting the charges involved in the
product. These costs are related to policy issuance, administration and servicing. In addition
to this would be the cost of mortality.
MORTALITY CHARGES
The mortality would be charged on an annual basis from the contribution. This is an
illustration of mortality rates per thousand for some ages, based on current level of charges.
Mortality rate/ 000's of SA Rs. 1.46 Rs. 1.48 Rs. 2.54 Rs. 6.05
An amount of 43% of your premium in the first year, 85% in the 2nd and 3rd year and 95%
from the 4th year onwards, would be used for investment to provide you with returns. There
is also a fixed charge of Rs.300 per annumInvestment Objective: The investment objective of
this plan is to provide a balanced investment between long-term capital appreciation and
current income while protecting the capital. Investment
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INDICATIVE PORTFOLIO ALLOCATION
For the first year, there is a guarantee of 4% of bonus credit on the invested premium.
The investment administration charges would be an amount equal to 1.25% of the investment
value. The company shall refund the premium paid by the investors, after deducting certain
charges. These charges include a proportionate risk premium for the period of cover, the
stamp duty on the policy and/ or any expenses borne by the Company on the medical
examination.
CASH PLUS
The road to the customer/investors financial goals has many twists, turns and probably a few
unexpected roadblocks. Balancing the needs of savings and protection are major
considerations in customers financial planning. Liquidity with the investors/customers
savings is also important to take care of milestones in customers/investors life.
An insurance plan that gives added protection savings, multiple options, plus the power of
liquidity.
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CashPlus offers you three levels of cover (in the form of sum assured) for the same amount
of total annual contribution. You have the option to choose amongst Basic, Standard and
Enhanced level of cover, as given below:
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POLICY VALUE ACCUMULATE
At the end of every year, the company would declare a bonus interest that would be applied
on the allocable portion* of your premium. This bonus interest will have a compounding
effect on the value of your policy. The differential between the bonus interest credited and the
income earned on investments would not be more than 1%. The payment of the accumulated
value of your policy (including the bonus interest declared) is guaranteed on maturity
(termed as maturity proceeds), or in the case of unfortunate death, along with the sum
assured (the amount of cover).
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Maturity proceeds are the accumulated value of your policy at the time of maturity. However,
if the value of your investment is more than the accumulated value of your policy then that
too will be paid at the time of maturity.
Customer have the unique flexibility of receiving your maturity proceeds as a lump-sum or
in equal annual installments over 3 or 5 years which can be decided by you at maturity. In
case of death, the remaining amount would be paid back. There is no life-cover during this
withdrawal period.
With CashPlus you have the option of withdrawing from the accumulated value of your
policy every year, after the first five years of the policy. It gives you an option to withdraw up
to 10% of the accumulated value of your policy till that year. This helps you in taking care of
your liquidity expenses and planning for milestones in your life.
Any person-aged up to 60 years can apply for CashPlus. The maximum age at which cover
ceases is 75 years of age. The minimum term of the product is 10 years and the maximum
term would be 30 years. CashPlus has a minimum annual premium of Rs. 8,400, a half yearly
premium of Rs. 4,200 and monthly premium of Rs.700.
CashPlus acquires a paid-up value after three policy years' premiums are fully paid. The paid
up value will be the higher of the accumulated value of your policy and the investment value
of the accumulated value at the time of death or maturity. The guaranteed surrender value
will be 35% of all premiums paid excluding the 1st year premium, all extra premiums and
premiums for rider benefits. In addition, the company may provide the current non-
guaranteed surrender values as specified from time to time on request.
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LOAN CAN BE TAKEN ON CASHPLUS
CashPlus provides a loan to policyholders, once the product is paid up. The loan amount
would depend upon the paid-up value of the policy. Interest applicable from time to time
would be charged on the loan amount.
For extra protection, CashPlus offers the add-on value of the following riders#:
INVESTMENT OF PREMIUMS
The premiums paid by you would be invested after deducting the charges involved in the
product. These costs are related to policy issuance, administration and servicing. In addition
to this would be the cost of mortality.
MORTALITY CHARGES
The mortality would be charged on an annual basis from the contribution. This is an
illustration of mortality rates per thousand for some ages, based on current level of charges.
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Age 25 years 30 years 40 years 50 years
Mortality rate / 000's of SA Rs. 1.46 Rs. 1.48 Rs. 2.54 Rs. 6.05
An amount of 43% of your premium in the first year, 85% in the 2nd and 3rd year and 95%
from the 4th year onwards, would be used for investment to provide you with returns. There
is also a fixed charge of Rs.300 per annum.
INVESTMENTS OBJECTIVE
The investment objective of this plan is to provide a balanced investment between long-term
capital appreciation and current income while protecting the capital. Investment will be in
fixed income instruments in appropriate proportions depending on market conditions
prevalent from time to time.
For the first year, there is a guarantee of 4% of bonus credit on the invested premium.
The investment administration charges would be an amount equal to 1.25% of the investment
value.
LIFE TIME
Life is about changes. Some customer expects - marriage, children, retirementand some
customer dont - sickness, disability, and death. The ICICI Prudential, believe that life should
50
not have to be about fear of the unexpected and that you should be in control so as to
overcome them. To be in total control of lifes situations you need total flexibility.
Welcome to a new horizon in financial planning. LifeTime gives you the flexibility and
control in meeting your protection and investment needs. With this plan you have the
freedom to direct your investment to get the benefit of market linked returns and choose the
level of protection. And because youre in charge you can accommodate your changing
needs.
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PROCESS TO START
PLANING PROCESS
You can choose a specified level of protection according to your need. Part of the premium
paid will be used to pay for the death benefit and the rest is invested in plan of your choice.
Entry into the plan will be based on the Unit Value applicable on the date of policy issue. The
amount of premium towards death benefit decreases with the increase in the value of the
units.
BENEFITS
DEATH BENEFITS
In case of the unfortunate event of death, your near and dear ones are spared an uncertain
future. The nominee/s will receive the death benefit chosen (less any withdrawals) or value of
the units, whichever is higher.
WITHDRAWAL BENEFITS
There is no maturity date. Anytime after 3 years of commencement (provided you have paid
premium for 3 full years) you can make withdrawals through partial or complete surrender of
units.
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CUSTOMER CAN CHOOSE THE KIND OF BENEFITS OR RETURNS HE WANTS
MAXIMISER (GROWTH)
If high growth is your priority, this is the plan for you. You can enjoy long-term capital
appreciation from a portfolio that is invested primarily in equities and equity-related
securities. In line with the objective, the asset allocation in this fund is: Equity and related
security (maximum 100%) and Debt, Money Market and Cash (maximum 25%).
PROTECTOR (INCOME)
If your priority is steady returns with moderate risk, you can opt for this plan. In line with
the objective, the asset allocation of the fund is: Debt instruments (maximum 100%) and
Money Market and Cash (maximum 25%).
BALANCER (BALANCED)
If you prefer a balance of growth and steady returns, choose our Balancer plan. This fund
invests in equity and equity linked securities, as well as in fixed income securities. In line
with the objective, the asset allocation in this fund is: Equity and related security (maximum
40%) and Debt, Money Market and Cash (minimum 60%)
For all calculation purposes, the existing NAV of the funds as of that day would be
considered.
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IF CUSTOMER WANTS TO CHANGE HIS INVESTEMENT OPTION LATER
If at a later stage your financial priorities change, you can switch between the various plans
options, and we also let you do this absolutely free once a year.
You can top up your investment (minimum Rs 10,000) at any time when you have surplus
funds.
At various stages of your life your liabilities may increase - marriage, children, a new home,
children going off for higher studiesLifeTime lets
you increase your death benefit without any underwriting during specialevents 3 or every third
year up to 3 times. This increases @ 25% of original death benefit or Rs. 1, 00,000
whichever is lower each time. You can also increase your protection at other times or for
higher levels subject to underwriting rules.
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IF CUSTOMER WANTS TO DECREASE THE DEATH BENEFITS
Over time your liabilities may decrease too, as various loans get paid off your children
become independent and so on. So, if you want to decrease your death benefits you can do
that too, at any time.
If after at least 3 years payments are made and you are unable to pay the subsequent
premiums, the cover under the policy will continue and the premiums towards the life cover
and riders will be debited from the unit fund.
We ensure that you are prepared for any eventuality, with a choice of riders along with the
death benefits.
Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and Friday
UNIT VALUE=
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TAX BENEFITS
Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.
AGE AT ENTRY
CHARGES
The initial administrative charges in the 1st year would be 20% of the premium, for
premium amounts less than Rs.50, 000/-. For premiums equal to or more than Rs.50,
000/-, it is 18% of the premium. In the 2nd year, the charges are 7.5% of the
premium. From 3rd year onwards 4% of premium will go towards charges.
Other Charges: Annual administrative charges of 1.25% of net assets for each of the
funds - Protector (Income), Maximiser (Growth) & Balancer (Balanced). Annual
investment charge of 0.25% per annum of the net assets for Protector funds and 1%
per annum of net assets for Maximiser & Balancer options.
Note: In case the unit value is inadequate to cover charges, the policy will terminate.
Same as in other policies. In case of a market linked policy, your units will be repurchased by
the company at the unit value determined on the Valuation Date following the date of
cancellation after deducting the charges mentioned above.
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Being the head of the family requires that you bear quite a few responsibilities. Some of
these include: being able to fund your child's higher education, your daughter's wedding, and
your own cozy nest and realize all your other dreams. This is an ideal plan for those who
want to accumulate funds on a regular basis while enjoying insurance protection.
FUNCTION OF SavenProtect
It is a fixed term plan in which you pay premium regularly during the term. The plan
provides with a guaranteed addition (GA) of 3.5% compounded annually for the first 4 years
of the plan and thereafter bonuses (Vested bonuses) will be applicable as per the performance
of the company.
Once the policy matures, i.e. at the end of the term, you can get the full sum assured and
guaranteed additions as well as the vested bonuses. In addition, you will get an extended term
insurance cover for five years after the maturity date of the policy for 50% of the sum
assured. You will not have to pay any premium for the same.
Riders are the additional benefits that you can add on to your policy. You can opt for riders
when taking the basic policy at a marginally incremental cost. No bonuses are paid on the
riders.
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Major Surgical Assistance
However, during the tenure of extended life cover, no rider benefits are available to you. The
health add-ons (Major Surgical Assistance Benefit and Critical Illness Benefit) are eligible
for tax benefits under Sec 80D. The other add-ons (Accident & Disability Benefit and
Accident Benefit Rider) when attached to Save'n'Protect is eligible for tax benefits under Sec
88, as per the prevailing income tax laws.
APPPLICABLE FOR
You can apply if you are in the age group of 0 to 60 years. The maximum cover-ceasing age
is 70 years. The minimum sum assured you should apply for is Rs. 50,000 and the minimum
term is 10 years. The minimum premium is Rs.6, 000 p.a.
Customer can avail of a loan under the policy, to meet his requirements. This will be
dependent on the surrender value his policy acquires. Interest is charged on the amount of
loan availed.
PAYMENT OF PREMIUMS
Customer can opt for the yearly, half - yearly & monthly mode of premium payment. The
monthly mode is only available through ECS (Electronic Clearing Service)
TAX BENEFITS
Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.
Customers policy acquires a paid up value after premiums are paid for three years. A
guaranteed surrender value is payable to him, if he decide to terminate the policy after 3
58
years premiums are paid. However, the insurance protection provided under this policy will
also cease.
If the Life assured commits suicide whether sane or insane, within one year from the date of
commencement of the policy, the policy shall be void and the premiums paid hereunder will
be refunded after deducting the expenses incurred by the Company for the issue of the policy.
As an individual you have to be financially prepared for various milestones in your life. If
you are newly married, you need to plan for a baby a few years from now. If you have
teenage children you need to plan for their university education. What you need is a plan to
meet your periodic financial requirements with the added benefit of insurance protection.
FUNCTION OF CASHBAK
It is a three in one plan that combines savings, liquidity and protection through the following:
FUNCTION
The survival benefits available to you are as follows:
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At end of year Survival Payment At end of year Survival Payment
as a % of basic sum as a % of basic sum
assured assured
3 10% 4 10%
6 15% 8 15%
9 20% 12 20%
12 25% 16 25%
On the death of the life assured, the beneficiary will get the sum assured, the guaranteed
additions and the vested bonuses. The plan provides guaranteed addition (GA) of 3.5%
compounded annually for the first 4 years of the plan and bonuses thereafter (Vested
bonuses) will be applicable as per the performance of the company.
Riders are the additional benefits that you can add on to your policy. You can opt for riders at
the time of taking the basic policy at a marginally incremental cost. No bonuses are paid on
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the riders.
customer can opt for one or more of the following riders:
The health add-ons (Major Surgical Assistance Benefit and Critical Illness Benefit) are
eligible for tax benefits under Sec 80D. The other add-on (Accident & Disability Benefit and
Accident Benefit) when attached to CashBak are eligible for tax benefits under Sec 88.
APPLICABLE FOR
You can apply if you are 16 years old and no older than 55 years. The minimum sum assured
you should apply for is Rs.75, 000. The minimum premium amount is Rs.6, 000 p.a.As an
individual you have to be financially prepared for various milestones in your life. If you are
newly married, you need to plan for a baby a few years from now. If you have teenage
children you need to plan for their university education. What you need is a plan to meet your
periodic financial requirements with the added benefit of insurance protection.
FUNCTION OF CASHBAK
It is a three in one plan that combines savings, liquidity and protection through the following:
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Policy Term 15 years Policy Term 20 years
3 10% 4 10%
6 15% 8 15%
9 20% 12 20%
12 25% 16 25%
50% plus 50% plus
guaranteed guaranteed
15(Maturity) 20 (maturity)
additions plus additions plus
vested bonuses. vested bonuses.
On the death of the life assured, the beneficiary will get the sum assured, the guaranteed
additions and the vested bonuses. The plan provides guaranteed addition (GA) of 3.5%
compounded annually for the first 4 years of the plan and bonuses thereafter (Vested
bonuses) will be applicable as per the performance of the company.
Riders are the additional benefits that you can add on to your policy. You can opt for riders at
the time of taking the basic policy at a marginally incremental cost. No bonuses are paid on
the riders.
You can opt for one or more of the following riders
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The health add-ons (Major Surgical Assistance Benefit and Critical Illness Benefit) are
eligible for tax benefits under Sec 80D. The other add-ons (Accident & Disability Benefit
and Accident Benefit Rider) when attached to CashBak are eligible for tax benefits under Sec
88, as per prevailing income tax laws.
You can apply if you are 16 years old and no older than 55 years. The minimum sum assured
you should apply for is Rs.75, 000. The minimum premium amount is Rs.4, 800 p.a.
PAYMENT OF PREMIUMS
You can opt for the yearly, half - yearly & monthly mode of premium payment. The monthly
mode is only available through ECS (Electronic Clearing Service)
TAX BENEFITS
Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.
Yes, you can discontinue your policy after premiums are paid for three years. A guaranteed
surrender value is payable to you, if you decide to terminate the policy after 3 years
premiums are paid. However, the insurance protection provided under this policy will also
cease.
EXCLUSION CLAUSES
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If the Life assured commits suicide whether sane or insane, within one year from the date of
commencement of the policy, the policy shall be void
PROTECTION PLANS
We all hope to live a full life till a ripe old age... to ensure our children's sustenance and
healthy growth. But what if a sudden disability or illness strikes? Besides the grief and the
pain, such an event also completely disrupts life for all the people who are financially
dependent on the company. ICICI PRUDENTIAL life insurance policies offer a
comprehensive range of protection benefits:
LIFEGUARD
Happiness and security for our family is what all of the company want. However, the
uncertainties of life often worry the company. The thought of unfortunate events befalling the
company may cause anxiety about our ability to provide for our loved ones. This is especially
the case if we are no longer there to provide for them. Insurance can help ease worries. It
ensures that your loved ones are adequately provided for and that their lives are not affected,
even if you are not around.
ICICI Prudential Life Insurance, India's No. 1 private life insurance company,
presents LifeGuard. Choose from three term plans to insure your life and provide total
security to your family, at a very affordable cost.
Level Term Assurance
Level Term Assurance with Return of Premium
Single Premium
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TERM ASSURANCE
Under this plan, in case of death of the life assured during the term, the Sum Assured will be
paid to the beneficiary. There are no maturity benefits. Hence on survival till maturity, the
policy will terminate.
You will need to pay the regular annual premium, for the term chosen. You will be provided
with life cover equal to the Sum Assured.
If the customer selects this plan, he will need to pay a regular annual premium for the term
chosen. He will be provided with life cover equal to the Sum Assured. In case of death of the
life assured during the term, the Sum Assured under the plan will be paid to the beneficiary.
On survival till maturity, all the premiums paid, will be returned.
The plan also offers the unique feature of an additional extended cover for 5 years after
maturity of the policy, for 50% of the Sum Assured. This provides additional protection, even
after the Premium Paying Term.
SINGLE PREMIUM
This is a single premium variant of the LifeGuard Level Term plan. You will need to make a
one-time premium payment, depending on the term and Sum Assured chosen by you. The
minimum Sum Assured is Rs. 2.5 lakhs.
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In case of death of the life assured during the term, the Sum Assured under this plan will be
paid to the beneficiary. There are no maturity benefits, at the end of the term.
APPLICABLE FOR
Applicants should be between 18 and 55 years of age. The minimum term is 5 years and the
maximum term is 30 years, which is subject to a maximum of 65 years of age. The minimum
premium payable is Rs. 2,400 per annum.
Applicants should be between 18 and 55 years of age. The minimum term is 10 years and the
maximum term is 30 years, which is subject to a maximum of 65 years of age. The minimum
premium payable is Rs. 2,400 per annum.
Applicants should be between 18 and 55 years of age. The minimum term is 3 years and the
maximum term is 15 years, which is subject to a maximum of 65 years of age.
For added protection of your family against any unfortunate eventualities, LifeGuard offers
you the following:
Note: the Riders mentioned above are not available with the Lifeguard Single Premium
policy.
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Tax benefits under section 88 and section10 (10D) as per the prevailing Income Tax laws.
In case you wish to surrender LifeGuard Level Term Assurance and Single Premium Plans,
no surrender value is available. However, on surrender of LifeGuard Level Term Assurance
with Return of Premium, a guaranteed surrender value is payable to you. This is only
applicable once three years of premium are paid.
INVESTMENTS PLANS
Often you may have some investible funds lying idle - a bonus or maybe a windfall. You can
either secure your family through insurance or invest it for growth. The need for insurance is
crucial but you also want to see your money grow through market investments. But in
volatile market conditions .
Relax, because now you can hedge your investments with safer investment vehicles that
provide you with a diversified portfolio.
ICICI Prudential Life Insurance presents Investment Solutions, which provide you high
returns, while guaranteeing complete peace of mind.
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This follows from our understanding that life has many facets and they are manifested
through its various needs. Therefore our philosophy is to provide you with comprehensive
insurance solutions that cater to your dual needs of earning potentially high returns as well as
stay insured for life. Thus we offer you Investment Solutions that combine the best of
insurance and investment.
LIFELINK
An investment plan that gives you the flexibility of choosing your investment options while
keeping you insured for life.
Depending on the customer needs, Investment Plans could allow him to do one or more of
the following:
Plan for Tangibles: buy that fashionable car, that huge refrigerator, etc.
Earn Market-linked Returns: earn market-related returns while your family remains
protected, even in volatile market conditions.
LIFELINK PLANNING
Maintain your lifestyle - even if your income was to reduce in the future.
Legacy Creation: buy property; invest in shares, bonds, etc. for your children or
grandchildren.
LIFELINK (SP)
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Often you might have some investible funds lying idle - a bonus or maybe a windfall. You
can either secure your family through insurance or invest it for growth. The need for
insurance is crucial but you also want to see your money grow through market investments.
But, in volatile market conditions.
LifeLink allows you to enjoy both the benefits! A unique plan that combines the security of a
life insurance policy with the opportunity of enjoying high returns on your investments.
Without the market risks compromising the protection of your family!
LIFELINK
CHILD PLAN
As a responsible parent, customer will always ensure a hassle-free, successful life for your
child. However, life is full of uncertainties and even the best laid plans can go wrong. Here's
how he can give your child a 100% safe and assured tomorrow, whatever the uncertainties.
Smart Kid Child Plans are designed to provide flexibility and to safeguard thier child's future
education and lifestyle, taking all possibilities into account.
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Presenting SmartKid Child Plans. Leave nothing to chance
Financial benefits when you require them With the ever-increasing cost of education, the
financial requirements for your child's career would change from time to time. This plan
provides you with the flexibility of withdrawals whenever you require them! It allows you a
maximum of 5 withdrawals, the amounts of which are as follows:
So be it the engineering college fees or post-graduate studies you can use the withdrawals as
per your requirements. You can avail of this flexibility any time after 5 years. However, you
would be allowed to make only one withdrawal in a year. At the end of the premium paying
term, you can take the remaining value as maturity benefits.
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Peace of mind for you this plan gives you the option to choose a protection cover for a sum
assured between 5 to 50 times your annual
contributions. The uniqueness of this plan is that even if anything happens to the parent, the
benefits to the child are not compromised. The benefits under this policy are as follows:
The Sum Assured is paid immediately. This ensures that your loved ones stay
financially secure, even in your absence.
All the future contributions are waived off - Therefore your family is not burdened
financially and the accumulation of funds for your child's career continues.
The Policy Benefits continue - This ensures that units can be withdrawn as and when
required for your child's educational and developmental needs.
Premium Waiver Rider is available at a nominal extra amount. You can ensure that in
the unfortunate event of total and permanent disability due to an accident, all the
premiums that were to be paid by you are waived off and the policy continues to
secure your child's future.
Annual Allowance With the help of the Income Benefit Rider, this plan guarantees a regular
income to secure your child's educational and developmental needs for his all round
development. The Income Benefit Rider takes care of this through the payment of 10% of the
Sum Assured annually to your child in the unfortunate event of the parent's death.
Premium Holiday If you have been making premium payments for at least 5 years and then
miss out on any of the subsequent premium payments, your policy does not lapse. We will
ensure that your cover keeps on continuing. However, to keep the policy in force, the
mortality charges
(which include pay or waiver benefit premium) are deducted from your fund, which will
have an affect on your savings.
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POLICY CAN BE APPLICABLE FOR
Parents aged between 20 and 60 years with children in the age group of 0 to 15 years, can
purchase this policy.
Amount and Mode of payment: Rs. 18,000/- per annum, for the annual mode of
payment. Rs.9,000/- every six months, for the half-yearly mode of payment. Rs.
1,500/- per month, for the monthly mode of payment.
Choice of term: Between 10 to 25 years.
The age of your child at maturity: Between 22 to 25 years.
Maximum age of parent on maturity: 70 years.
Minimum Sum Assured: Rs. 1,00,000/-
FUNCTION
You choose a Sum Assured between a specified range of 5-50 times (for ages 41 and above it
is 5 to 25 times) your annual contribution. Part of the premium paid by you is ad the
company Ted towards mortality charges (which include payer waiver benefit premium) and
administrative expenses and the rest is invested as per the investment plan chosen by
you. Entry into the plan will be based on the units allotted to you on the policy issue date, as
per the unit value on that date.
CHARGES OF POLICY
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Mortality charges towards the Sum Assured and the payor waiver benefit premium
are on a one- year renewal term.
Annual administrative charges of 1.25% per annum of the net assets.
Annual investment charge of 0.25% per annum of the net assets of Protector Plan
and 1% per annum of the net assets for Maximiser and Protector plan and 1% per
annum of the net assets for Maximiser and Balancer options.
Initial charge of 1% on the top-ups.
One free switch every year, after which a switching fee of 1% of the switching
amount will be levied. If the switch is not utilised for any particular year, then it
cannot be carried forward to the next year.
So be it the engineering college fees or post-graduate studies you can use the withdrawals as
per your requirements. You can avail of this flexibility any time after 5 years. However, you
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would be allowed to make only one withdrawal in a year. At the end of the premium paying
term, you can take the remaining value as maturity benefits.
Peace of mind for the customer. This plan gives you the option to choose a protection cover
for a Sum Assured of 5 times your premium. The uniqueness of this plan is that even if
anything happens to the parent, the benefits to the child are not compromised. The benefits
under this policy are as follows:
The Sum Assured is paid immediately - This ensures that your loved ones stay
financially secure even in your absence.
The policy benefits continue - This ensures that the units can be withdrawn as and
when required for your child's educational and developmental needs.
Annual Allowance With the help of the Income Benefit Rider, this plan guarantees a regular
income to secure your child's educational and developmental needs for his all-round
development. The Income Benefit Rider takes care of this through the payment of 10% of the
Sum Assured annually to your child, (in the unfortunate event of death of the parent/s).
Parents aged between 20 and 50 years with children in the age group of 0 to 15 years, can
purchase this policy. Other details of the policy
Minimum single premium: Rs. 50,000/-.
Choice of term: Between 10 to 25 years.
The age of your child at maturity: Between 22 to 25 years.
Maximum age of the parent on maturity: 60 years.
Minimum Sum Assured: Rs. 2, 50,000/-.
FUNCTION
You choose a premium and 500% of that is given as the Sum Assured. Part of the premium
paid by you is adjusted towards mortality and administrative expenses, and the rest is
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invested as per the investment plan chosen by you. Entry into the plan will be based on the
units allotted to you on the policy issue date, as per the unit value on that date.
CHARGES
For premiums between Rs.50, 000/- and Rs.99, 999/- the charges are 4% of the
premium. For premiums between Rs.1, 00,000/- and Rs.4, 99,999/- the charges are
2.25%. For premiums greater than Rs.5, 00,000/- the charges are 1.25%.
Mortality charges towards the Sum Assured are on a one-year renewal term basis.
Annual administrative charge of 1.25% per annum of the net assets.
Annual investment charge of 0.25% per annum of the net assets of Protector plan and
1% per annum of the net assets for Maximiser and Balancer plans.
Initial charge of 1% on the top-ups.
One free switch every year, after which a switching fee of 1% of the switching
amount will be levied. Any unutilised free switch cannot be carried forward.
contribution, the amount is invested. Depending upon your investment priorities, you can
choose your investment portfolio.
Choice of Investment Plan: You have the option to choose how you want your investment to
grow as per your investment horizon and priorities. You can choose any of the following
options or a combination of these options in any proportion.
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Maximiser (Growth): If high growth is your priority, this is the plan for you. You can enjoy
long-term capital appreciation from a portfolio that is invested primarily in equities and
equity-related securities. In line with the objective, the asset allocation in this fund is: Equity
and related security (maximum 100%) and Debt, Money Market and Cash (maximum 25%).
Protector (Income): If your priority is steady returns with moderate risk, you can opt for this
plan. In line with the objective, the asset allocation of the fund is: Debt instruments
(maximum 100%) and Money Market and Cash (maximum 25%).
Balancer (Balanced): If you prefer a balance of growth and steady returns, choose our
Balancer plan. This fund invests in equity and equity linked securities, as well as in fixed
income securities. In line with the objective, the asset allocation in this fund is: Equity and
related security (maximum 40%) and Debt, Money Market and Cash (minimum 60%)
For all calculation purposes, the existing NAV of the funds as of that day would be
considered.
Change in Investment Plan: If at a later stage your financial priorities change, you can switch
between the various investment plan options as above at any time. You can do this absolutely
free once every year. Each switch should be a Top-up: If, besides the single premium that you
pay, at any given point of time you want to park in some surplus amount for your child, you
can do that in the form of a top-up. The top-up has to be for a minimum of Rs. 5,000/-. This
can take care of increasing expenses later in the child's educational career. The top-up
amount, after the deduction of the top-up charge, is allotted as units, at the unit price
prevailing on the date of the top-up. There is no additional death benefit associated with top-
ups.
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SMART KID
As parents, Customer biggest concern is that of securing the future of his child. In today's
world, with ever increasing competition, escalating cost of education and uncertain financial
markets, it is very important to plan for their child's future.
PRESENTING SMARTKID
A plan which gives Customers child the freedom to pursue their dreams, the strength to face
challenges, the guarantee to live life to its fullestwhatever be the uncertainty.
SMARTKID
It is a plan that provides guaranteed benefits to customers along with life insurance
cover. SmartKid is so designed that it provides money at all the critical milestones in his/her
life, whatever be the uncertainties.
Parents (between 20-60 years) with children in the age group of 0-12 years can purchase this
policy. You have the flexibility to choose the exact age of the child (between 22 to 25 years),
at which the policy is to mature.
Imagine that the customer is 32 years old and his child is 5 years old and he wants the
product to mature when he/she is 22 years old. The customer also has the option to choose
between two structures of payout of benefits.
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STRUCTURE 1
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STUCTURE 2
Join a professional
14th year of policy
19 years 20% of SA* college or graduation
(Term-3)
college.
(Sum Assured)
Annually for the first 4 years of the plan and bonus thereafter (Vested
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Bonus) applicable as per the performance of the company.
Because company SmartKid ensures that you have total peace of mind as far as your child's
future is concerned.In the event of death of the Life Assured:
Sum Assured of the plan is paid immediately - assists the family in meeting the unforeseen
expenses incurred because of the unfortunate loss.
Waiver of Premium - no future premium are payable, thereby ensuring that your family is
not burdened financially.
Educational benefits, guaranteed - which means that the future of the child remains secure.
Thus, there will be no financial obstacle in realizing the dream which the parent or child had.
ADD-ON OPTION
PAYMENT OF PREMIUMS
SPECIFICATION OF SMARTKID
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Maximum limit under Income Benefit Rider: Rs.1,000,000/-
PAYMENT OF PREMIUMS
You can opt for the yearly, half - yearly & monthly mode of premium payment. The monthly
mode is only available through ECS (Electronic Clearing Service)
TAX BENEFITS
Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.
RETIREMENT PLANS
Most of Customer pictures him selves enjoying the fruits of labor after retirement, going on
his dream vacation, or helping their children's career take wing. But do they realise that
financing all this will most likely depend partly on their personal savings? Because personal
savings and investments represent a significant source of retirement income for many people,
they can never save too much.
Currently, they are at a stage where they are juggling many roles, as nurturing parents, dutiful
caregivers to elders, supportive life partners, while trying to maintain a career. It is too easy
to get carried away handling and solving the day-to-day problems to not look into their
retirement needs. It may also seem too far away to be of concern. But a look at the issues
below will make the need for some strategic planning at this stage amply clear.
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Today, thanks to a healthier lifestyle and advances in medicine, the average Indian lives
longer. This makes the challenge of accumulating enough money for retirement even more
difficult, since it may have to last longer. Also, with the falling interest rate scenario and the
rising costs of medical expenses retirement mean monetary uncertainty for most of the
company. More so, because there is also the ever-persistent evil of inflation, which erodes
your purchasing power. The graph below illustrates how much will Rupees 10,000/- amount
to after some years
Therefore, the message is simple - no matter whether you are 30 or 50, you should start
planning early to have a healthy retirement kitty. (See graph below for an illustration)
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According to my illustration here the cost of delaying is high. Situation A is when the
customer is saving Rs 10000 annually from the age of 25 to 34 years and Situation B is when
the customer saves the same annual amount from the age of 35 to 59 years. As can be seen in
the example, even after investing customers money for a 2.5 times longer duration, the
maturity value in the second case is much lesser (the figures are based on a hypothetical
interest rate of 10%). The longer his money is allowed to grow at a compounded rate, the
more dramatic will the difference be eventually.
Therefore, the message is simple - Put Time on customer Side and Start Early.
The ICICI Prudential Life Insurance believes in the philosophy of providing meaningful and
comprehensive insurance solutions to plan customers retirement. ICICI PRUDENTIAL
LIFE INSURANCE CO.LTD. Insurance solutions are the most optimal tools to plan
customer retirement because they give to him Safety, Liquidity, Tax benefits, Health cover
and Life protection and thus ensure that the customers are comprehensively covered.
ICICI Prudential presents Retirement Solutions that combine the best of investment and
insurance. These solutions are developed to ensure customers peace of mind for the years to
come. Solutions that give him the power to maintain their lifestyle needs for as long as they
live.
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LIFETIME PENSION
A regular premium linked deferred pension plan that gives customer freedom to choose the
amount of premium, and invest in market-linked funds, to generate potentially higher returns.
A regular premium deferred pension plan that gives customer flexibility to choose between 3
levels of sum assured for the same level of total annual contribution.
LIFELINK PENSION
A single premium linked deferred pension plan that gives customer the freedom to choose the
amount of premium, and invest in market-linked funds, to generate potentially higher returns.
A regular premium deferred pension plan that helps customer saves for their retirement while
providing him with life insurance protection.
Depending on customers specific needs ICICI PRUDENTIAL Retirement Solutions give him
the:
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Power to receive your pension in 5 different ways
Power to choose your annuity provider
Power to add-on flexible riders at a nominal extra premium#
LIFETIME PENSION
Life expectancy has been rising rapidly and today, the customer can now expect to live much
longer than their earlier generations. For him, this increase will mean a longer retirement life,
stretching into a couple of decades. So, it is more critical than ever to plan adequately and
wisely for those incremental retirement years, keeping in mind that customer expenses will
spiral upward, their cost of living will increase and inflation will be ever present. Therefore,
they need a plan that ensures safety, risk cover, income security and regular returns for their
post- retirement years.
ICICI PRUDENTIAL can help the customer to just that. ICICI Prudential Life Insurance
presents LifeTime Pension - a regular premium linked deferred pension plan.
A Linked Deferred Plan gives freedom to customer to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns. A part of the premium
paid is used to pay for the death benefit (if any) opted for by him and the rest would be
invested in the plan of their choice. On the retirement date, the accumulated value of the units
will be used to purchase an annuity - to provide him with regular income for life.
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LIFE COVER BENEFIT
In the unfortunate event of customers death before retirement, their Spouse has the option of
receiving either the death benefit or the value of units as a lump sum (whichever is higher),
or get an annuity that would provide regular income for life.
Power to choose the retirement date customer can choose a vesting date once the customer is
50 years of age. However, customer has the option of postponing this vesting date till the age
of 70 years. With this, they can take advantage of market movements.
Power to increase your investments Use your surplus funds to top-up their investment
(minimum Rs 10,000) during the deferment period.
Power to choose the protection level that customer choose the amount of life cover their
require. They can also opt for a Zero Death Benefit. The amount, which they pay for the
Death Benefit, depends on their chosen protection level.
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CONDITION
EXIT OPTION
This plan acquires a surrender value after full premiums for 3 policy years are paid. In case
of complete withdrawal, a surrender value equivalent to the value of the units is paid.
CHARGES ON POLICY
The initial administrative charges in the 1st year would be 20% of the premium, for premium
amounts less than Rs.50, 000. For premiums equal to or greater than Rs.50, 000, the charges
would be 18% of the premium. In case the Zero Death Benefit has been opted for, the
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charges would be 18% and 15% for the same premium bands. However, in all cases, charges
would be 7.5% in the 2nd year and 4% from 3rd year onwards.
OTHER CHARGES
Other charges would include annual administrative charges of 1.25% per annum of net assets
for Protector (Income) and 1.25% per annum for Maximizer (Growth) and Balancer
(Balanced) options. An annual investment charge of 0.25% per annum of net assets for
Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would also be charged.
ANNUITY OPTIONS
FUNCTION OF ANNUITY
Customer accumulated value would start paying their regular income in the form of
an annuity, at a frequency chosen by the customer. This income can be received
monthly, quarterly, half-yearly or annually.
Customers have the option of selecting a guaranteed annuity rate period of either 5 or
7 years.
The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, based on the then prevailing
annuity rates.
On commencement, and at the end of every guaranteed period, the amount of annuity
payable for the next guaranteed number of years and the Residual Purchase Price
(which will be available for calculation of the annuity rate at the end of the
guaranteed annuity period), on survival, will be guaranteed.
Once the policy holder is 75 years of age, the annuity will be fixed for life and not
reviewed thereafter.
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At the time of reset of the annuity, you have an Open Market Option, which would
enable you to get your annuity from any other annuity provider, should our rates not
be as competitive. However, there will be a charge of 1% of the residual purchase
price, should you choose this option (Please do refer to the 'Power to choose your
annuity provider' section).
On vesting, customer has the flexibility to choose from five different annuity options:
Joint Life, Last Survivor with Return of Purchase Price: In this case, the annuity is first
paid to the annuitant. After the death of the annuitant, the Spouse starts getting a pension,
which is an amount that is equal to the annuity paid to the annuitant.
Power to choose customer annuity provider. This option offers them the flexibility to buy a
pension from any other insurer of their choice, at the time of vesting. So, they have the
freedom to take the best offer available in the market.
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TAX BENEFIT IN LIFETIME PENSION
Tax benefit u/s 80CCC (1): Up to Rs10, 000 deducted from your taxable income.
For protection to the customers family against any unfortunate health hazards or eventuality
ICICI PRUDENTIAL offer them the following add-on benefits/riders with this plan
In case of a market linked policy, your units will be repurchased by the company at the unit
value determined on the Valuation Date following the date of cancellation after deducting the
charges mentioned above.
SECURE PLUS
Life expectancy has been rising rapidly and today, customer can now expect to live much
longer than they earlier generations. For him, this increase will mean a longer retirement life,
stretching into a couple of decades. So, it is more critical than ever to plan adequately and
wisely for those incremental retirement years, keeping in mind that their expenses will spiral
upward, cost of living will increase and inflation will be ever present. Therefore, they need a
plan that ensures safety, risk cover, income security and regular returns for their post-
retirement years.
ICICI Prudential Life Insurance presents Secure plus Pension - a flexible regular premium
deferred pension plan.
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Power to choose their protection levels Secure plus Pension provides them with three levels
of sum assured, for the same amount of total annual contribution. Customers have the option
of choosing between Basic, Standard and Enhanced levels of cover.
How to calculate your cover as per the term you have chosen
(Term - 5) x Premium = Basic cover
(Term) x Premium = Standard cover
(Term + 5) x Premium = Enhanced cover
The Zero Death Benefit option scurePlus Pension gives him the opportunity to shift from one
level of cover to another as per their changing requirement. Once the customer has decided to
avail of the Zero Death Benefit option, they do not get the option to alter their cover again. In
the unfortunate event of death, their Spouse is protected by a lump sum amount, which is the
sum assured plus the value accumulated in their policy. Additionally, their Spouse can
exercise the option to draw a pension from this amount.
The total accumulated value of the policy, including the declared bonuses, would be used as a
purchase price to give them a pension of their choice. They have the option of taking up to
33.33% of the accumulated value as a lump sum and begin a pension from the rest of the
amount.
The invested premium and the declared bonus interest would be payable on death (along with
the Sum Assured) or would be used as a purchase price at the time of vesting. However, at
the time of payment due to death or at the time of vesting, if the value of the individual's
investment account is more than the invested premium (along with the declared bonus
interests) then the additional amount would also be payable on death or would be used as a
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purchase price at the time of vesting. The differential between declared bonus interest and
earned rate would not be greater than 1%.
Power to choose the retirement datecustomer can choose a vesting age between 50 and 75
years. You have the flexibility to postpone the vesting date from the originally chosen vesting
date up to a maximum of 75 years of age. This option can be exercised only once, 6 months
prior to vesting.
With Life Cover: Any person between 18 and 60 years of age can apply.
Without Life Cover (Zero Death Benefit): Any person between 18 and65 years of
age can apply.
Minimum term is 10 years.
Minimum annual premium is Rs.10, 000; half-yearly premium is Rs.5,000; and
monthly premium is Rs.834.
EXIT OPTION
SecurePlus Pension acquires a surrender value after premiums for three policy years are fully
paid. The surrender value is the accumulated value of your policy, or its market value at the
time of death or maturity, whichever is higher. Surrender value can be classified under two
categories:
a) Guaranteed
b) Non-guaranteed.
Guaranteed surrender value will be 35% of all premiums paid - excluding the first
year premium and all extra premiums and premiums for rider benefits.
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On request, the company may provide non-guaranteed surrender values as specified
from time-to-time.
The insurance protection ceases on surrender of the policy.
ANNUITY OPTION
FUNCTION OF ANNUITY
Your accumulated value would start paying you regular income in the form of an
annuity, at a frequency chosen by you. This income can be received monthly,
quarterly, half-yearly or annually.
You have the option of selecting a guaranteed annuity rate period of either 5 or 7
years.
The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, the then prevailing annuity rates.
On commencement, and at the end of every guaranteed period, the amount of annuity
payable for the next guaranteed number of years and the Residual Purchase Price
(which will be available for calculation of the annuity rate at the end of the
guaranteed annuity period), on survival, will be guaranteed.
Once the policy holder is 75 years of age, the annuity will be fixed for life and not
reviewed thereafter.
At the time of reset of the annuity, you have an Open Market Option, which would
enable you to get your annuity from any other annuity provider, should our rates not
be as competitive. However, there will be a charge of 1% of the residual purchase
price, should you choose this option (Please do refer to the 'Power to choose your
annuity provider' section).
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On vesting, you have the flexibility to choose from five different annuity options:
Life Annuity with Return of Purchase Price: Life Annuity for the annuitant with the return
of the purchase price to the beneficiary
Life Annuity Guaranteed for 5, 10, and 15 years: Guaranteed Annuity is paid for the
chosen term (5/10/15 years) and after that, the annuity continues as long as the annuitant is
alive.
Joint Life, Last Survivor with Return of Purchase Price: In this case, the annuity is first
paid to the annuitant. After the death of the annuitant, the Spouse starts getting a pension,
which is an amount that is equal to the annuity paid to the annuitant.
Power to choose customer annuity provider. This option offers them to the flexibility to buy a
pension from any other insurer of their choice, at the time of vesting. So, they have the
freedom to take the best offer available in the market.
TAX BENEFIT
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LIFELINK PENSION
Life expectancy has been rising rapidly and today, you can now expect to live much longer
than your earlier generations. For you, this increase will mean a longer retirement life,
stretching into a couple of decades. So, it is more critical than ever to plan adequately and
wisely for those incremental retirement years, keeping in mind that your expenses will spiral
upward, your cost of living will increase and inflation will be ever present. Therefore, they
need a plan that ensures safety, risk cover, income security and regular returns for your post-
retirement years.
ICICI PRUDENTIAL can help customer to do just that. ICICI Prudential Life Insurance
presents LifeLink Pension - a single premium linked deferred pension plan.
A Linked Deferred Plan gives you the freedom to choose the amount of premium, and invest
in market-linked funds, to generate potentially higher returns. A part of the premium paid is
used to pay for the death benefit (if any) opted for by you and the rest would be invested in
the plan of your choice. On the retirement date, the accumulated value of the units will be
used to purchase an annuity - to provide them with regular income for life.
Life cover benefit .In the unfortunate event of your death before retirement, your Spouse has
the option of receiving either the death benefit or the value of units as a lump sum
(whichever is higher), or get an annuity that would provide regular income for life.
Power to choose the retirement date. Customer can choose a vesting date once you are 50
years of age. However, you have the option of postponing this vesting date till the age of 75
years. With this, they can take advantage of market movements.
Power to increase their investments. Use your surplus funds to top-up their investment during
the deferment period. The minimum top-up amount is Rs. 5,000.
Power to choose the protection level .They choose the amount of life cover you require. In
this plan, the Death Benefit is 1.05 times the premium paid. They can also opt for a Zero
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Death Benefit. The amount, which they pay for the Death Benefit, depends on their chosen
protection level.
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ENTRY CONDITION
You should be between 18 and 60 years of age. For Zero Death Benefit, any
person between 18 and 65 can apply. The cover ceasing age is 60 years.
Minimum premium in this plan is Rs. 50,000.
Minimum term of the product is 3 years.
EXIT OPTION
This plan acquires surrender value after 1 year from the start of the plan. In case of complete
withdrawals, a surrender value equivalent to the value of the units is paid.
CHARGES ON POLICY
For premiums between Rs.50, 000 and Rs.99, 999, the initial charges would be 4% of the
premium. For premiums between Rs.1, 00,000 and Rs.4, 99,999, charges would be 2.25%
and for an amount of Rs.5, 00,000 or more, the charges would be 1.25% of the premium.
OTHER CHARGES
Other charges would include annual administrative charges of 1.25% per annum of net assets
for Protector (Income) and 1.25% per annum for Maximizer (Growth) and Balancer
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(Balanced) options. An annual investment charge of 0.25% per annum of net assets for
Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would also be charged.
ANNUITY OPTION
ANNUITY WORK
Customer accumulated value would start paying you regular income in the form of an
annuity, at a frequency chosen by them. This income can be received monthly,
quarterly, half-yearly or annually.
Customers have the option of selecting a guaranteed annuity rate period of either 5 or
7 years.
The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, based on the then prevailing
annuity rates.
On commencement, and at the end of every guaranteed period, the amount of annuity
payable for the next guaranteed number of years and the Residual Purchase Price
(which will be available for calculation of the survival, will be guaranteed.
Once the policy holder is 75 years of age, the annuity will be fixed for life and not
reviewed thereafter.
At the time of reset of the annuity, you have an Open Market Option, which would
enable you to get your annuity from any other annuity provider, should our rates not
be as competitive. However, there will be a charge of 1% of the residual purchase
price, should you choose this option (Please do refer to the 'Power to choose your
annuity provider' section).
On vesting, customers have the flexibility to choose from five different annuity options:
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1. Life Annuity: Annuity for life.
2. Life Annuity with Return of Purchase Price: Life Annuity for the annuitant with the
return of the purchase price to the beneficiary
3. Life Annuity Guaranteed for 5, 10, and 15 years: Guaranteed Annuity is paid for the
chosen term (5/10/15 years) and after that, the annuity continues as long as the
annuitant is alive.
4. Joint Life, Last Survivor with Return of Purchase Price: In this case, the annuity is
first paid to the annuitant. After the death of the annuitant, the Spouse starts getting a
pension, which is an amount that is equal to the annuity paid to the annuitant. After
the death of the last survivor, the purchase price is returned to the beneficiary.
5. Joint Life, Last Survivor without Return of Purchase Price: In this case, the annuity is
first paid to the annuitant. After the death of the annuitant, the Spouse starts getting a
pension, which is an amount that annuity rate at the end of the guaranteed annuity
period), on is equal to the annuity paid to the annuitant.
Power to choose their annuity provider. This option offers you the flexibility to buy a pension
from any other insurer of your choice, at the
time of vesting. So, you have the freedom to take the best offer available in the market.
Tax benefit u/s 80CCC (1): Up to Rs10, 000 deducted from your taxable income.
In case of a market linked policy, their units will be repurchased by the company at the unit
value determined on the Valuation Date following the date of cancellation after deducting the
charges mentioned above.
Life expectancy has been rising rapidly and today, they can now expect to live much longer
than your earlier generations. For him, this increase will mean a longer retirement life,
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stretching into a couple of decades. So, it is more critical than ever to plan adequately and
wisely for those incremental retirement years, keeping in mind that their expenses will spiral
upward, their cost of living will increase and inflation will be ever present. Therefore, they
need a plan that ensures safety, risk cover, income security and regular returns for your post-
retirement years.
FOREEVER LIFE
they can and maintain your lifestyle for a lifetime. So, whether they are 30 or 60 we have just
the right retirement plan them.
Life cover benefits.ForeverLife Pension Plan provides life cover during the deferment phase.
In the unfortunate event of your death, their Spouse has the option to receive the sum assured
with guaranteed additions and vested bonuses (if any) as a lump sum or get an annuity that
would provide a regular income for life.
Power to choose the retirement date they can choose the vesting age between 50 to 70 years.
They have the flexibility to postpone the vesting from the originally chosen vesting date up
to a maximum of 70 years of age. This option can be exercised once at the time of vesting.
During the postponed period, their accumulated amount will earn interest as determined by
the company from time to time. There will be no life cover or premiums paid during this
period.
ENTRY CONDITION
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Minimum sum assured is Rs. 50,000.
Minimum term is 5 years and the maximum is 30 years.
Minimum premium is Rs.6, 000.
EXIT OPTION
ForeverLife Pension Plan acquires a surrender value after premiums for 3 policy years are
fully paid. A surrender value is payable if you wish to withdraw after 3 years.
ANNUITY OPTION
WORKING OF ANNUITY
Customer can accumulated value would start paying you regular income in the form
of an annuity, at a frequency chosen by them. This income can be received monthly,
quarterly, half-yearly or annually.
They have the option of selecting a guaranteed annuity rate period of either 5 or 7
years.
The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, based on the then prevailing
annuity rates.
On commencement, and at the end of every guaranteed period, the amount of annuity
payable for the next guaranteed number of years and the Residual Purchase Price
(which will be available for calculation of the annuity rate at the end of the
guaranteed annuity period), on survival, will be guaranteed.
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Once the policy holder is 75 years of age, the annuity will be fixed for life and not
reviewed thereafter.
At the time of reset of the annuity, you have an Open Market Option, which would
enable you to get your annuity from any other annuity provider, should our rates not
be as competitive. However, there will be a charge of 1% of the residual purchase
price, should you choose this option (Please do refer to the 'Power to choose your
annuity provider' section).
On vesting, they have the flexibility to choose from five different annuity options:
5. amount that is equal to the annuity paid to the annuitant. After the death of the last
survivor, the purchase price is returned to the beneficiary.
6. Joint Life, Last Survivor without Return of Purchase Price: In this case, the
annuity is first paid to the annuitant. After the death of the annuitant, the Spouse starts
getting a pension, which is an amount that is equal to the annuity paid to the
annuitant.
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Power to choose their annuity provider. This option offers that they are the flexibility to buy a
pension from any other insurer of their choice, at the time of vesting. So, they have the
freedom to take the best offer available in the market.
Tax benefits available with ForeverLife Tax benefit u/s 80CCC (1): Up to Rs10, 000
deducted from your taxable income.
INVESTMENT PLAN
Often they may have some investible funds lying idle - a bonus or maybe a windfall. You can
either secure your family through insurance or invest it for growth. The need for insurance is
crucial but they also want to see their money grow through market investments.
BOTH SECURE
Relax, because now customer can hedge their investments with safer investment vehicles that
provide them with a diversified portfolio.
ICICI Prudential Life Insurance presents Investment Solutions, which provide you high
returns, while guaranteeing complete peace of mind.
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This follows from ICICI PRUDENTIAL understanding that life has many facets and they are
manifested through its various needs. Therefore our philosophy is to provide them with
comprehensive insurance solutions that cater to their dual needs of earning potentially high
returns as well as stay insured for life. Thus ICICI PRUDENTIAL offers
customer Investment Solutions that combine the best of insurance and investment.
LIFE LINK
An investment plan that gives them the flexibility of choosing their investment options while
keeping them insured for life.
Often they might have some investible funds lying idle - a bonus or maybe a windfall.
Customer can either secure their family through insurance or invest it for growth. The need
for insurance is crucial but they also want to see their money grow through market
investments. But, in volatile market conditions.
SECURE BOTH
LifeLink allows customer to enjoy both the benefits! A unique plan that combines the
security of a life insurance policy with the opportunity of enjoying high returns on their
investments. Without the market risks compromising the protection of their family!
LIFELINK
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Provides death benefit security to customers family.
Brings you additional income on funds that might have languished in their savings
account.
Enables them to enjoy the upside of market returns, while protecting their family
from the downsides.
All this without having to pay year after year! Customer can make a single premium
investment that can be as low as Rs.50, 000. This is as good as it gets!
Customer can choose the amount according to their want to invest. They can also choose the
death benefit between two options,
After deducting initial expenses the balance amount is invested in units of the fund you
choose.
BENEFITS
DEATH BENEFIT
Life is full of uncertainties. In case of the unfortunate event of their demise, their near and
dear ones are spared an uncertain future. They will be taken care of through ICICI
PRUDENTIAL guaranteed death benefit. In the event of death the nominee/s will receive
higher of the value of units or the initial death benefit (500% or 105% of the initial premium
as chosen) less any withdrawal.
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WITHDRWAL BENEFIT
There is no specific maturity date. Anytime after 1 year they can choose to withdraw their
money through partial or complete surrender of units. The death benefit would be reduced by
the amount withdrawn.
Unit Value
Market / Fair Value of the relevant Plan's Investments plus Current Assets less
Current Liabilities and Provisions
=________________________________________________________
FLEXIBILITY OPTION
MAXIMISER (Growth)
If high growth is Customer priority this is the plan for him. they can enjoy long-term capital
appreciation from a portfolio that is invested primarily in equity and equity-related securities.
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PROTECTOR (Income)
If customer priority is steady accumulation of returns, they can opt for the Income Plan.
Here he can accumulate a steady return at moderate risk across a medium to long-term
period.
BALANCER (Balanced)
If CUSTOMER prefers a balance of growth and steady returns, choose ICICI PRUDENTIAL
Balancer Plan. This would ensure that there portfolio is invested in equity and equity-linked
securities as well as in fixed income securities.
If at a later stage customer financial priorities change, he can switch between the various plan
options, and he can do this absolutely free once a year.
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IF CUSTOMER HAVE MORE INVESTIBLE FUNDS AT THE END OF THE YEAR
He can top-up his investment at any time when he has surplus funds. There is no death
benefit associated with the top-ups. The minimum top-up has to be Rs.5, 000.
TAX BENEFIT
The premium will quality for tax benefits under Section 88 up to 20% of the actual capital
sum assured. The tax benefits under Section 10(10D) will be available only on the death
benefit. He is advised to satisfy himself about the taxation aspects as per prevailing laws.
AGE OF ENTRY
ALLOCATION STRUCTURE
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Initial allocation of 96% for premium between Rs.50,000 - Rs.99,999, 97.75% for
premium between Rs.1,00,000 - Rs.4,99,999 and 98.75% for all premium equal to or
above Rs.5,00,000.
OTHER CHARGES
Age 30 40 50
Mort. Charge / 000
1.48 2.54 6.05
of SA
In case of a market linked policy, your units will be repurchased by the company at the unit
value determined on the Valuation Date following the date of cancellation after deducting the
charges mentioned above
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Employee care - the defining edge. In this new age of rapid developments and just-in-time
methodologies, one big challenge that organisations face is to establish and maintain a
competitive edge over others. Today's cutting-edge product or service becomes tomorrow's
undifferentiated commodity. In an era of competitive parity, the only asset that makes a
decisive difference between corporate success and failure is the quality of human capital.
Employee benefits have proven to be an excellent tool to optimize the retention of talent and
improve an organizations bottom line. The quality of an organisations employee benefits
establishes and maintains a company's image as a caring employer. Optimum care of
employees is a long-term investment that results in a sustained competitive advantage for an
organisation in the times to come.
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A plan that helps employers funds their statutory gratuity obligation in a scientific manner.
Flexible Defined Contribution Superannuation scheme that provides for a retirement kitty for
each member of the group.
ICICI Pru's group gratuity plan helps employers fund their statutory gratuity obligation in a
scientific manner. Employers can avail of the tax
benefits as applicable to approved gratuity funds. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.
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ADVANTAGES OF GROUP GRATUITY POLICY
With the various investment options you have greater investment flexibility in
deciding the asset allocation for your gratuity fund. Also switching between the
various options is allowed depending upon your requirements and the prevailing rules
of the company.
The product offers full transparency of the performance of the various investment
options by publication of biweekly Unit Value and regular disclosure of the portfolio
of each of the investment option.
The product offers greater value to the employee by packaging life insurance cover
with the gratuity, with minimal amount of underwriting.
The product has low explicit charge structure and the conditions for the exit are
specified upfront.
ICICI Pru also offers administrative convenience in terms of customized
underwriting; faster claim settlement, easier access to information and regular
statements.
The contribution made by the employer is not included in the value of taxable perquisites in
the hands of the customer.
Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)
Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for
the purpose of computation of profits and gains of business.
Contribution towards past service liability is allowed as deduction as per the Income Tax
rules.
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Actuarial services to provide a scientific estimation of the gratuity liability.
ICICI Pru's flexible group term solution helps provide affordable cover to members of a
group. The cover could be uniform or based on designation/rank or a multiple of salary. The
benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
It is a one-year renewable policy where one master policy covers all proposed employees
comprising the group. The minimum group size under one scheme should be 25. New
members can join the group and outgoing members can leave the group at any point during
the policy term.
ELIGIBILITY OF MEMEBER
All employees above 18 years of age will be covered and maximum age for entry is
59 years. Cover will cease on normal retirement date or completion of age 60 years if
earlier
All employees satisfying some basic insurability condition are eligible for coverage
Coverage will be allowed as long as the policy is in force and the Member is in
employment of the scheme's employer
SUM ASSURED
Amount of cover is flexible and can be constant for all members or vary according to their
grade or salary. For each individual member Minimum Sum Assured is Rs. 1, 00,000/- and
Maximum Sum Assured is Rs. 25, 00,000/-.
Greater convenience for the employees with relaxed underwriting "Free Cover
Limits" with simplified underwriting depending upon the number of employees in the
group and the level of cover chosen.
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Guaranteed benefit: On death during the term of the contract (while in service), the
sum assured will be paid to the beneficiary of the employee.
Maturity Benefit: No benefits are payable to the members at the end of policy period
or on earlier policy termination.
ADD-ON OPTION
Accident and Disability Benefit Rider: Additional cover against accidents and
disability in the form of a rider that can be attached to the plan. This cover provides
payment of 100% of the Rider Sum Assured as a benefit on death. An additional
100% of Rider Sum Assured will be provided on death due to accident while traveling
as passenger on mass public surface transport via the company or train. On total
permanent disability due to accident 10% of the Rider Sum Assured will be paid each
year for ten years.
Critical Illness Cover: Additional cover provides payment of a benefit on diagnosis
of any of the 9 specified critical illnesses in the form of a rider that can be attached to
the plan. Any claims arising in this rider is paid on diagnosis and not as
reimbursement.
PREMIUM PAID
1. Premium will be paid by the employer and will be in the form of a single lump sum
amount. Additional premium for new members joining the group will and medical
requirements. be paid on a monthly basis as and when they join
Employer is allowed the facility of showing the premium payment as the companys expense
in the year of payment.
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ICICI Pru offers a flexible Defined Contribution Superannuation scheme that provides for a
retirement kitty for each member of the group. The employee has the option of choosing
from various annuity options or opting for a partial commutation of the annuity at the time of
retirement. The employer can avail of tax benefits applicable to an approved Superannuation
trust. Term Insurance can be added to enhance the benefits for employees.
Employees can commute 1/3 rd of the retirement kitty and take an annuity of their
choice with the remaining amount of the retirement kitty.
This product also offers the benefit of an additional term insurance cover.
Employees have the option of choosing from a pool of three different investment
options. They can also switch between the investment options.
The employee can choose from four annuity options
Greater control over investments to each member/employer as the asset allocation can
be decided by choosing one or more of the investment options.
Transparency of investment performance by publication of daily unit value and
quarterly disclosure of portfolio.
The product has low explicit charge structure and the conditions for the exit are
specified upfront.
Additional lives cover for the member employees with minimal underwriting.
Administrative convenience in terms of the company to maximized underwriting,
faster claim settlement, easier access to information, regular statements etc.
The employee has the benefit of having additional life cover with Superannuation to provide
protection to their family.
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The employee has the benefit to opt for either partial commutation or take an annuity with
the whole amount in the retirement kitty.
The employer can avail of the tax benefits applicable to an approved Superannuation to the
company.
The employer has the benefit of administrative convenience with easier access to the
information and transparency of the product and charge structure.
SANMAR GROUP
The Sanmar group is one of the largest industrial groups in South India, with a turnover for
1998-99 of close to Rs.10 billion. The groups businesses are professionally managed by its
over 650 highly qualified managers. It has a significant presence in the businesses that have
been identified as its core areas: PVC/ Chlorochemicals, Specialist Chemicals, Shipping
and Engineering.
AMP
AMP Limited is one of the world's leading financial services businesses providing around
nine million customers world-wide with wealth creation and asset protection products and
services. AMP has been the largest life insurer in Australia, and one of the largest in NZ, for
most of the last century and is a major provider of superannuation and asset management
products and services. AMP has a significant presence in the UK through Pearl, London Life,
Virgin Direct and Henderson.
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The initial paid up capital of the joint venture is Rs. 125 crore, wherein AMP would have a
stake of 26 percent and the Sanmar Group would hold 74 percent. The company expects to
break even by the end of seventh year of its operations. AMP Sanmar is targeting to sell
30,000 policies in the first year of its operations in India and hoping to collect Rs. 26 crore in
premiums in this period.
Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated
in 1945 as Bachraj Trading Corporation. Initially it started by assembling two and three
wheelers in collaboration with Piaggio of Italy. After the expiry of the agreement in 1971 the
two and three wheelers acquired the brand name of Bajaj. The strength of the company lies in
its strong brand image and ability to offer value for money products leveraging on its large-
scale operations.
Bajaj is one of India's largest two and three - wheeler manufacturer and the fourth largest
manufacturer of two-wheeler in the world, with an annual turnover of Rs. 42.16 billion.
ALLIANZ AG
Allianz group was founded in 1890 and is one of the world's leading insurance companies
with over 100 years' experience in insurance and related services. It is also the largest insurer
in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key
business areas of Allianz group include General Insurance (property, engineering, marine,
motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health
insurance, Asset Management and Pension Funds Management under Allianz group. Rated
'AAA' by S&P it has assets over 670 billion DM (Rs. 17,160 billion) under its management
with employee strength of over 1, 05,700.
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Allianz Bajaj Life Insurance Co. Ltd. Company is a joint venture between Allianz AG and
Bajaj Auto Limited. Characterized by global presence with a local focus and driven by
customer orientation to establish high earnings potential and financial strength, Allianz Bajaj
Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the
Insurance Regulatory and Development Authority (IRDA) Certificate of Registration (R3)
No 116 on 3rd August 2001 to conduct Life Insurance business in India.
Aditya Birla Group is India's second largest business house, with a turnover of over $4.75bn
and an asset base of $3.8 bn. The Group is a well diversified conglomerate with 72,000
strong workforce spanning 40 Companies spread across 17 countries .The flagship
companies of the Group - Grasim, Hindalco, Indian Rayon and Indo Gulf - hold leadership
positions in their respective areas of business.
Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the U.S., the
Philippines, Hong Kong, and the U.K. Its major lines of business are life insurance, annuities
and mutual funds and investment services. Sun Life's rating reflects extremely strong
diversification of revenues and profitability, outstanding capitalization, good fundamental
earnings, and high-quality investments. In Canada, the company is especially strong in the
corporate life and health insurance and savings markets. In the U.S., the company is a top 20
player in the variable annuity market and a significant force in the upscale individual
insurance market. In the U.K., Sun Life is amongst the top 20 life and health insurers.
Birla Sun Life Insurance Company is a 74: 26 joint venture between Aditya Birla Group and
Sun Life financial Services of Canada. As on 1 st March 2003, the company has an equity
capital of Rs. 180 crore. Birla Sun Life has Mr. Nani B Javeri as its CEO.
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The company plans to focus on rural segment by leveraging the network of the Aditya Birla
Centre for Community Initiative and Rural Development in rural areas. The company's
distribution set up comprises insurance advisors for life and an expert marketing team for
group products.
AVIVA PLC
Aviva Plc is the largest life and general insurance group of UK and the world's seventh
largest insurer with world wide premium income and retail investment sales of 28 billion
and more than 200 billion in assets under management. Aviva Plc is the holding company of
Aviva group of companies which is in to life assurance business, long term savings, all
classes of general insurance business and fund management. The group has 64,000
employees serving 25 million customers.
Established in 1884, Dabur is one of India's oldest and largest groups of companies with
interests in ayurvedic specialties, pharmaceuticals, and personal care and healthcare products.
The annual sales turnover of the group is over Rs. 1200 crores. For more than a century
Dabur has worked in active collaboration with nature to provide the best of herbal health and
personal care products to its consumers.
Aviva Life Insurance Company, a joint venture between Dabur India and CGU, a wholly
owned subsidiary of Aviva Plc, is capitalised at Rs. 110 crore. Mr. Stuart Purdy is the
managing director of Aviva Life.
Aviva Life has tied up with ABN Amro, Canara Bank, Laxmi Vilas Bank and American
Express for distribution of its products.
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HDFC
Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the
largest residential mortgage finance institution in the country. The corporation has had a
series of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as
on March 31, 2000 stood at Rs. 2,096 crores.
HDFC operates through 75 locations throughout the country with its Corporate Headquarters
in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service
associates in Kuwait, Oman and Qatar.
STANDARD LIFE
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has
been in the life insurance business for the past 175 years, is a modern company surviving
quite a few changes since selling its first policy in 1825. The company expanded in the 19th
century from its original Edinburgh premises, opening offices in other towns and acquiring
other similar businesses.
Standard Life currently has assets exceeding over 70 billion under its management and has
the distinction of being accorded "AAA" rating consequently for the past six years by
Standard & Poor.
HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted licence by the IRDA to operate in life insurance sector. Each of the JV player is
highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL
and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors.
These reflect the efficiency with which HDFC and Standard Life manage their asset base of
Rs. 15,000 Cr and Rs. 600,000 Cr respectively.
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HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC
is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a
stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
VYSYA BANK
Vysya Bank is one of the most aggressive of the older-generation private-sector banks. With
the investment from a foreign partner, Bank Brussels Lamberts, in the equity of the bank, it is
expected to gear up to effectively fight competition in the new liberalized era. Vysya Bank is
a big player given its significant branch penetration. It has a very high degree of retail focus
with good customer service. The Vysya Bank is one of the largest private banks in India with
around 2 million customers and 480 retail outlets.
ING
ING Group, with an asset base of over Rs. 28,42,000 crore is a global financial institution of
Dutch origin, which is active in the field of banking, insurance and asset management in
more than 60 countries, with nearly 90,000 employees. ING comprises a broad spectrum of
prominent companies working close to the customer, many of them operating under their
own brand names.
ING INSURANCE
ING Insurance is the worlds second largest life insurance company as per latest Fortune
rankings with a client base of over 50 million since it acquired ReliaStar and Aetna Financial
Services earlier this year. It is the third largest financial services company in Europe and the
tenth largest financial services company in the World.
ING has joined hands with Vysya Bank, one of India's leading private sector banks, to form
ING Vysya Life Insurance, which is expected to be the first Bank assurance venture in the
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country. Together they have roped in GMR group, which has wide ranging interests in fields
such as power generation, infrastructure, manufacturing, software and banking.
As per the JV agreement, Vysya Bank would hold 49 per cent stake, ING 26 percent, and the
GMR Group would hold 25 per cent. The paid up capital of the joint venture is Rs. 110 crore.
The company which is headquartered at Bangalore has commenced its operations at Mumbai
and Delhi. Mr. Yvo Metzelaar is the Chief Executive Officer cum Managing Director of ING
Vysya Life Insurance
METROPOLITANT LIFE
MetLife India proudly carries a 135 year old legacy of helping build financial freedom for
everyone. Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc.
(NYSE: MET), is a leading provider of insurance and other financial services to individual
and institutional customers. The MetLife Companies serve approximately 12 million
individuals in the U.S. and companies and institutions with 33 million employees and
members, including 88 of the Fortune 100 companies. MetLife also has, through its
subsidiaries and affiliates, international insurance operations in 12 countries. For more
information about MetLife, please visit the company's web site at www.metlife.com.
MetLife India Insurance Company Private Limited ("MetLife India") is the Indian affiliate of
Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S,
based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002.
MetLife India was incorporated in April 2001 as a joint venture between MetLife
International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private
Limited and other private investors.
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MetLife India benefits from its affiliated company's 135-year old expertise and track record
of establishing successful operations in emerging markets, in addition to the unique strengths
of its Indian promoters. MetLife India offers a range of innovative products and aims to build
financial freedom for everyone. MetLife India is headquartered in Bangalore and has offices
in 9 cities and an additional 1,000 outreach points through its distribution channel partners.
For more information about MetLife India, please visit the company's web site at
www.metlifeindia.com.
Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the
Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance
Limited on November 2, 1985 and obtained its Certificate of Commencement of Business
on February 11, 1986. With the liberalisation of the Indian economy and the opening up of
the financial markets, the Company diversified and started offering a wider spectrum of
financial services.
Old Mutual plc. is a leading financial services provider in the world, providing a broad range
of financial services in the area of insurance, asset management and banking. It is a leading
life insurer in South Africa, with more than 30% market share. The partnership with Old
Mutual plc. Provides the Kotak Mahindra group with an international perspective and
expertise in the life insurance business.
The joint venture OM Kotak Mahindra Life Insurance started off with an initial net worth of
Rs. 150 crore, with 74:26 stake between KMBL and OM
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The Life Insurance business offers KMBL with an opportunity to leverage its core strengths
of Wealth Management and Retail Distribution.
SBI
State Bank of India (SBI) started its business way back in 1806 as Bank of Bengal. Today
SBI is the largest bank in the country with more than 9000 branches. It has seven associate
banks and together they have 30% of the Indian market share.
It has the distinction of being the strongest and amongst the most profitable bank in the
country. Net worth of SBI as on March 2000 stood at Rs. 12146 crore (US$ 2784 mn) and it
has a deposit base of Rs 19,680.3 crore (US$45,121mm).
The insurance venture, SBI-Life, is a step aimed at being a universal bank as it already has
subsidiaries for housing finance, merchant banking, mutual funds and primary dealership in
government papers and factoring businesses.
CARDIF
BNP Paribas, which is one among the three largest banks in Europe, is the holding company
of Cardif. BNP's presence in India dates as far back as 1860 and has 9 branches here.
Cardif, the insurance arm of BNP Paribas was set up in 1973 that specializes in long-term
savings, protection products and creditor insurance. In 1999 its premium income stood at
US$ 4 billion, with assets worth over US $ 23 billion under its management
Cardiff based in France, has the expertise for selling insurance products through banks and
has operations in over 20 countries.
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THE JOINT VENTURE
India's largest bank SBI and Cardiff S.A a leading insurer in France came together to form
SBI Life. It would be a 74:26 venture; with Cardif the foreign partner contributing 26% in
the paid capital of Rs. 250 crore. SBI would market the insurance products through select
branches of SBI and its seven associate banks. Mr. R. Krishnamurthy is the CEO of SBI Life.
TATA GROUP
Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover
exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over
years that it is a value driven company and has pioneering contributions in various fields
including insurance, aviation, iron and steel. Tata companies have forged a number of global
alliances with eminent international partners in several fields. In terms of capital market
performance as many as 40 listed Tata companies account for nearly 5% of the total market
capitalization of all listed companies. The Group has had a long association with India's
insurance sector having been the largest insurance company in India prior to the
nationalisation of insurance.
The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a group
company incorporated way back in 1919. Government of India took over the management of
this company as a part of nationalization of general insurance companies in 1972. Not
deterred by the move, Tata group have ventured into risk management services having tied up
with AIG group, back in 1977, with the incorporation of Tata AIG Risk Management
Services Pvt. Ltd.
AIG
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American International Group, Inc is the leading U.S. based international insurance and
financial services organization and the largest underwriter of commercial and industrial
insurance in the United States. Its member
companies write a wide range of commercial and personal insurance products through a
variety of distribution channels in over 130 countries and jurisdictions throughout the world.
AIG's Life Insurance operations comprise of the most extensive worldwide network of any
life insurer. AIG's global businesses also include financial services and asset management,
including aircraft leasing, financial products, trading and market making, consumer finance,
institutional, retail and direct investment fund asset management, real estate investment
management, and retirement savings products.
Tata AIG Life Insurance Co. Ltd. is capitalised at Rs. 185 crores of which 74 per cent has
been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr.
George Oommen has been named managing director of Tata AIG Life.
Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and
groups.
LIC has been established by an act of the Parliament and started functioning from 1-9-1956.
It is an autonomous body authorised to run the life insurance business in India with its Head
Office at Mumbai.
It has 7 zonal offices, over 100 Divisional offices and 2048 branches in India, with around
6.51 lakh agents. The Corporation also has offices in London, Fiji and Mauritius.
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UNIT LINKED v/s TRADITIONAL POLICIES
While the insurance sector was opened up to private sector, a number of players launched
their policies on unit-linked platform. Two years down the line, they have been quite,
successful in persuading the Indian customer to buy unit-linked policies.
ICICI Prudential, number one among private insurer, earned 50% of its new premium income
i.e. Rs. 365 cr. From unit-linked policies in 2002-2003.While Birla Sun Life, which is that, is
number two earned Rs. 149 from unit-linked policies? Together they account for about 52%
insurance sold by private players that shows the market has responded positively to unit-
linked policies.
GREATER TRANSPARENCY
The basic reason why unitLinked policies appealed customers is that they are very
transparent.
Unit-linked policies operate as follows:
Insurance company deducts annual charges.
With the rest (the investment part of the premium) it buys units for the customers.
Thereafter, customer can track how much is investment is worth, just as
In mutual -funds, He also knows where his money is invested.
All this did not matter in, the past when traditional policies offered guaranteed Returns.
Then, there was no need for investor to keep an eye on nitty-gritty. Now with interest rate
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having gone down, insurance companies are finding it very difficult to offer guaranteed rates
of return over a long period of time. Under these circumstances, customer wants to see how
their investments have grown from one year to next year.
INVEST RISKS
In unit-linked policies investment risk is borne by individual not as in traditional policies
where the investment risk is borne by insurance companies. At the time of buying the policy
the agent shows an illustration on how your investment will grow over tenure of policy.
These assumptions are based on prevailing investment environment. The insurance company
tries to meet these projections as closely as possible. Of course there are no guarantees and
company may sometimes miss its target.
CROSS SUBSIDIZATION
Cross subsidization and lack of transparency in traditional policy, can also work against the
customer .Support one insurer pays above market return on one policy (in effort to notch up
very high sales on that policy), say 8% on single premium bonds, at a time when yield on 5-
years
government security is only 6%. How will it pay these above market return to those who
invested in single premium bonds? It will cross subside returns earned from investments of
other policies (money back, endowment, etc.) to pay those returns.
So the investor who invested in these other policies would get a part of returns on his
investments, but not all that is due to him. Such malpractices can never happen in unit-linked
policies where you get regular statement informing you about the exact value of your
investments.
To draw an analogy, the traditional policy is like a joint family where there is safety net
(against adverse circumstances) but there is always the risk that the distribution of wealth
may not be equitable among all the stakeholders. The unit-linked policy is like the nuclear
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family, where what you earn is yours. But dont expect a safety net here you live purely on
how fund performs.
OM Kotak:Child
Attributes SmartKid LIC:Jeevan Kishor
Advantage
Age at Entry (Min - for parents with child For the child: 0 to 17
Child between 1-12
Max) 0-12 yrs years
Age of the child at
Term (Min - Max) maturity between 22 10 - 30 years 15-35 years
to 25 - current age
Min Rs.8000 (for 30
Premium N.A. N.A.
yr male, 20 yr term)
If dth of life assured
(Child) occurs within
Sum assured, 5 years of
Premium waiver commencement -
Sum assured +
Death Benefits benefit , Guaranteed return of premium
Bonus
benefits pd even if Else if dth occurs
death benefit paid after 5 years of
SA+bonus to
beneficiary
Premium waiver (Life
guardian benefit) : on Premium waiver : on
Income benefit, death of proposer all death of proposer all
Riders
Accident Benefit future premium future premium
waived waived
ADBR for proposer
15 yr: At assmed 10%
Returns 20 yr: 6.5% on allocated funds N.A.
return : 6.83%
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For a 15 year term
Premium Type regular Premium payable for regular
15 years : Rs.6640
N.A. N.A.
Guaranteed at t-7 =20% of
at t-7 =20% of SA, t-
Guaranteed 5 : 25%,t-2 :25%,end
N.A. N.A.
Additions, Bonuses of term :30%
+GA+bonus
Min: 100,000 Min Rs.10,000
Sum Assured Max Rs. 25,00,000
Max: 30,00,000 Max Rs.10,00,000
LIC:Jeevan HDFC:Personal
Attributes ForeverLife
Suraksha Pension Plan
Type of Plan Deferred Annuity With Deferred Annuity Deferred Annuity
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Life Cover W/out Life Cover W/out Life Cover
SP Plan Min : 35
years Max : 60
Age at Entry (Min - Min : 18 years Max : 60 For all Plans Min: 18 years
Max) years years Max: 65 years Regular Premium
Plan Min : 18 years
Max : 60 years
SP Plan Min : 5
years Max: 15
Min : 5 years For all Plans Min: 2 years
Term (Min - Max)
Max: 30 years years Max: 35 years Regular Premium
Plan Min : 10 years
Max : 40 years
SP Plan: Min: Rs.
10,000
Min limit: None
Premium Reg Prem Plan Min. N.A.
Max limit: None
Annual Premium of
Rs. 2,500
No Death Benefit.
No Death Benefit.
Acts like an endowment Premium
Death Benefits only Return of
policy during deferment returned@5%pa
Premium
compounded
ADBR, LTAR, CIBT,
MSAR
CI & MSAT cvrs can be
Only for RP
Riders enjoyed for addnl 10 yrs No Riders
Term Rider option
free of cost provided rider
maturity ages are not
reached earlier
Single Premium Single Premium
Premium Type Regular Premium
Regular Premium Regular Premium
Premium Payment Regular Premium Single Premium and Single Premium
Options Regular Premium and Regular
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Premium
132
RP: no death ben
as there is any life
cvr.
1. Option of 25% 1. Option of 25%
Endowment Plan1.
Commutation2. Postpone Commutation 2.
Other Options Option of 25%
vesting date3. Open Open market
Commutation
market option option
No Life cvr during
deferment prd. No
open mkt option. In
the jnt life option, No Life Cover
Negatives - pensn reduces to During deferment
50% to the spouse on period No Riders
death of the
purchasers. No hlth
rider
Health Protection after
Open market option
Retirement with MS & CI
Strengths health rider, 100% -
Riders Joint life last
spouse rider
survivor annuity
Contributions upto
Contributions up to
Contributions up to Rs. Rs. 10,000 p.a.
Rs. 10,000 p.a.
10,000 p.a. eligible for tax eligible for tax
eligible for tax
exemption under Sec exemption under
Tax Benefits exemption under Sec
80CCC(I)Commuted Sec 80CCC(I)
80CCC(I)
value up to 25% is free of Commuted value
Commuted value up
tax upto 25% is free of
to 25% is free of tax.
tax
SA, NCO, Notional Min limit: Rs. 50,000 Max Minimum SP. N.A
Benefit limit: None
Reg Premium: Min
NCO- Rs. 50,000 and
thereafter in
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multiples of Rs.
10,000
HDFC:Money
Attributes CashBak LIC:Money Back
Back
15 Years or 20
Term (Min - Max) 20 Years, 25 Years 10,15,20,25,30 yrs.
Years
Rs.6592 for a 20 Rs 7,585 for 20
Premium Rs. 6,380 for 20 yrs
Years Years
Maturity Benefits 120% 100% 100%
Acc.Ben,
ADBR, CIBR,
ADBR, Waiver of CIBR(standalone),
Riders MSBR, LTR,
Premium LTR (DSA), Waiver
Waiver of Premium
of Premium
Maturity Amount Rs.1,69,112 Rs. 1,70,000 Not available
IRR 7.45% for 20 yrs 7.81% for 20 yrs -
1) 120% SA
CI Standalone
obtained 2) MSA 1) Highest returns
Strengths Rider, Low entry
rider 3) Flexible 2) Lowest premium
age
rider options
Yr3-10% Yr6-15%
Yr5-25% Yr10-
Survival Ben for 15 Yr9-20% Yr12- Yr5-30% Yr10-30%
25% Yr15-50% +
Year Term 25% Yr15-50% Yr15-40% + Bonus
Bonus
+GA +Bonus
Survival Ben for 20 Yr4-10% Yr8-15% Yr5-20% Yr10- Yr5-25% Yr10-25%
Year Term Yr12-20% Yr16- 20% Yr15-20% Yr15-25% Yr 20-
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25%Yr20-50%
Yr20-40% 65pta 25% + Bonus
+GA+Bonus
CONCLUSION
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FINDINGS OF THE STUDY:
1. People in the age group of 30-40 years are the largest buyers of life insurance.
2. More than half of them buy for tax planning.
3. People from all income groups buy life insurance.
4. More than 50% are satisfied with the extent of their life insurance cover. They are not
interested in buying more life insurance.
5. The most type of product is save 'n' protect as it gives the 5 years extended life coverage,
the pension plans, and the parents are much concerned about the future of their child
therefore they prefer to buy children's smart kid also.
6. Some people have their doubts on the credibility and long stay of private insurers.
7. Many people were interested in buying medical insurance due to high cost of medical
expenses in riders.
8. Many people like the housewives have no idea about what type of insurance cover they
have.
LIMITATION OF STUDY
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No study is generally foot proof or error free. This study has also get some limitations given
below:
1. Most of the HR heads were either not very willing to spend time in discussing about
their insurance policies or were reluctant to tell about their plans for the fear of
receiving unsolicited calls from the insurance company in order to promote its
policies. Also fixing up an appointment with the senior HR executives was a major
fight and required continuous calling and visiting.
2. The new financial advisor proposals that were held up due to requirement of consent/
withdrawal letter were shown lying pending in the system resulting in a higher TAT.
It was suggested that call reminders be sent to such customers by operation
department to follow up the speedy conversation.
3. The respondents were salaried class only.
4. Since the study involved a thorough analysis of the insurance market and relative study
of various players offering the similar products and that of similar, it was required a
dedicated labors in term of both time and effort. Since the curriculum did not permit
more time, the study had to be very limited.
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APPENDIX I
PROPOSAL FORM
1. Nature of Proposal:
2. Purpose of Insurance:
3. Nature of Work:
4. How do you know the Life to be Assured/Proposer?
5. How long have you known the Life to be Assured/Proposer?
6. Is the Life to be Assured/Proposer related to you: Give details if yes?
8. Personal Asset Details:
7. Income Details of the Proposer (Rs. per Annum)
9. General Health Details of Life to be assured as informed to you:
10. Any other risk associated with occupation, sports pursuit, financial/social position or
personal habits of life to be assured/annuitant
That could affect the risk in the insurance proposal, please provide details.
1. Do you agree with the ACR by your Advisor?
2. By whoom were you introduced to the Life to be Assured/Proposer?
3. Are you satisfied about the identity of the Life to be Assured/Proposer?
4. Are you satisfied with the declared age of the Life to be Assured/Proposer?
5. What is your assessment about the general state of health of the Life to be assured?
6. Does the Life to be assured have any physical deformity or impairment?
Salary (per annum) Business Agricultural Others (Specify) Grand Total
Non-Medical
Income proof verified ITR Form 16 Pay Slip Balance Sheet P&L Others
(Pls Specify)
(a) House (b) Vehicle Owned Rented Co. Provided 4 - Wheeler 2 - Wheeler None
Physical Handicap/Deformity
History of any Illness/Surgery
138
Mental Retardation
Medical Investigations done
Confidential Report (To be compulsorily filled by the Advisor / FSC) :
If answer to any of the above questions is yes, provide details
If no please give details
139
QUESTIONNAIRE-II
PERSONAL DETAILS
1. Name:
2. Age:
3. Address (office/residence):
4. Telephone Number:
Residence: Office: Mobile:
5. What are your educational qualifications?
10th 12th Graduate Post Graduate
6. What is your current Occupation?
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Salaried Self-employed Student
7. How many members do you have in your family?
8. Are you the income earner in the family?
Yes /no
9. Do you have any sales experience? If yes, how many years?
10. Do you currently have an agency for any insurance company? If yes?
Life General
Which company
11. Would you like to give any reference? (Any)
FINDINGS
1. The violet part shows that the larger number of people was not aware about the
privatization of insurance sector.
2. The yellow one show that people are busy and dont have time for other work.
3. The red one implies no interest.
4. The blue shows the interest of people.
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LEARNINGS
Get the great exposure to the public at large.
Learn a lot about insurance sector.
Importance/necessity of insurance
Gain the convincing capabilities
Various products of insurance and their benefits
Know about the company and its work culture.
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BIBLIOGRAPHY
143